Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A)If marginal utility is diminishing, then total utility is increasing but at a decreasing rate.
• B)If marginal utility is diminishing, then total utility is concave.
• C)If marginal utility is negative, then total utility is downward-sloping.
• D)If marginal utility is decreasing, then total utility is decreasing.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive due to market price.

Good X

An unspecified product or commodity in economics, used in theoretical models and discussions.

Producer Surplus

The difference between the actual price producers receive for a product and the minimum price they would accept.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied by producers.