Suppose Your Marginal Utility from Consuming the 3rd Slice of Cake

question 219

Multiple Choice

Suppose your marginal utility from consuming the 3rd slice of cake is zero; then your total utility from consuming cake is

• A)maximised.
• B)decreasing.
• C)negative.
• D)increasing.

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Definitions:

Straight-Line Method

An accounting method of depreciation where a fixed amount is charged annually over the useful life of the asset.

Net Liability

Net liability refers to the total liabilities of an entity minus its assets, indicating a financial position where obligations exceed resources.

Accrued Interest

Interest that has been incurred but not yet paid.