If Total Utility Is Decreasing,then

question 16

Multiple Choice

If total utility is decreasing,then

• A)marginal utility is zero.
• B)marginal utility is decreasing but still greater than zero.
• C)marginal utility is equal to one.
• D)marginal utility is increasing.
• E)marginal utility is less than zero.

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Definitions:

Equivalent Units

A method used in cost accounting to measure the work done on inventory during a period, which considers partially completed units as a fraction of a full unit.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished products.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "first in, first out."

Process Costing

An accounting method that accumulates direct and indirect costs of a continuous production process and assigns them to individual units of output.