The Additional Satisfaction Derived from Consuming One More Unit of a Good

question 161

Multiple Choice

The additional satisfaction derived from consuming one more unit of a good or service is called

• A) diminishing marginal utility.
• B) the real-income effect.
• C) marginal utility.
• D) the substitution effect.
• E) the consumer optimum.

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Definitions:

Cost

The amount of money or resources expended to acquire an asset, achieve a goal, or maintain an operation.

Profitability

A measure of the efficiency of a company in generating profits from its operations, typically expressed as net income divided by revenue.

Management Accountants

Professionals who focus on financial reporting and analysis for internal use by business managers to make informed decisions.

Monetary Terms

Describing or measuring something in terms of money or currency.