Please Refer to the Following Information for Peartree Company

question 148

True/False

Please refer to the following information for Peartree Company:
If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, the total equity of the company will go up by $18,000.

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Definitions:

Marginal Utility

The incremental enjoyment or advantage a consumer receives from consuming one more unit of a good or service.

Macaroni and Cheese

A popular dish made with macaroni pasta and a cheese-based sauce, often baked or otherwise prepared as comfort food.

Negative

Used to describe values less than zero, situations of decrease or loss, or aspects considered undesirable or harmful.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction gained from consuming an additional unit decreases.