Refer to the Following Table

question 72

Essay

Refer to the following table:

a.What is the marginal utility of the third iced tea?
b.When does this consumer experience diminishing marginal utility?
c.When does this consumer experience negative marginal utility?

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The obligated party is typically someone entrusted with the care of money or property.

Breach of Contract

The violation or failure to perform any term of a contract without a legitimate legal excuse.

Watered Shares

Shares that have been issued by a company at a value much greater than its actual asset value, leading to an inflation of the company's apparent worth.

Par Value

The face value of a bond or stock as stated by the issuer, which has little relation to its market price.