-When Is Total Utility at a Maximum

question 73

Multiple Choice

-When is total utility at a maximum?

• A)When marginal utility is maximum.
• B)When marginal utility is zero.
• C)When marginal utility is increasing
• D)When marginal utility is decreasing.

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Definitions:

Residual Income

The net income an investment or project generates above the minimum required rate of return.

Required Rate Of Return

The minimum return an investor expects to achieve from an investment, given its risk level.

Responsibility Accounting

An accounting system that collects and reports planned and actual accounting information about the inputs and outputs of responsible parties.

Manager Control

The processes and procedures implemented by management to ensure that the organization's goals and objectives are achieved efficiently.