Which Statement Is True

question 48

Multiple Choice

Which statement is true?

• A)Total utility is maximized when marginal utility is zero.
• B)The utility of a Big Mac is greater than the utility of a Whopper.
• C)As one consumes more and more of a service,one's marginal utility rises.
• D)None of these are true.

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Definitions:

Risk

Exposure to the chance of loss or damage, often evaluated in financial terms for its potential impact on investment returns.

Sensitivity Analysis

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Capital Budgeting

The process a business undergoes to evaluate potential major projects or investments.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.