If You Bought Eight Pairs of Shoes,the Marginal Utility of the Seventh

question 78

Multiple Choice

If you bought eight pairs of shoes,the marginal utility of the seventh pair was

• A)greater than the price.
• B)equal to the price.
• C)less than the price.

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Definitions:

Required Rate of Return

The least annual percentage profit that must be earned by an investment to draw interest from companies or individuals into a given security or scheme.

Projected Increase

An estimate or forecast of the amount by which a specific metric, such as revenue or population, is expected to grow over a certain period of time.

Required Return

The minimum rate of return an investor expects or requires from an investment to compensate for its level of risk.

Expected Dividend Yield

A forecasted annual percentage of return that comes from dividends paid by the stock, calculated by dividing the anticipated annual dividend by the current stock price.