If the Marginal Utility of One More Piece of Candy

question 49

Multiple Choice

If the marginal utility of one more piece of candy is positive,then the:

• A) Total utility is at a maximum.
• B) Total utility will decrease with additional consumption.
• C) Candy is an inferior good.
• D) Total utility will increase with additional consumption.

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Definitions:

Homogeneous Oligopolist

A firm in a market structure where only a few sellers offer products or services that are essentially identical, leading to limited competition.

Highly Concentrated Industry

An industry dominated by a small number of firms, leading to reduced competition and potentially higher prices for consumers.

Pittsburgh Plate Glass

Pittsburgh Plate Glass, known today as PPG Industries, is an American global supplier of paints, coatings, optical products, specialty materials, chemicals, glass, and fiberglass.

Differentiated Oligopoly

A market structure in which a few firms dominate the market, and each firm offers a product or service that is slightly different from that of its competitors.