The Table Given Below Depicts the Total Utility Derived from the Consumption

question 119

Multiple Choice

The table given below depicts the total utility derived from the consumption of a good.Table 7.1

-The total utility of a consumer diminishes whenever:

• A)he or she buys an additional unit of a good.
• B)his or her marginal utility decreases.
• C)his or her total utility increases at a decreasing rate.
• D)the last unit consumed of a particular good is distasteful or provides dissatisfaction.
• E)other consumers are also purchasing the product.

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Definitions:

Short-Run Equilibrium

A state in which supply equals demand within a particular market, specifically under the assumption that some conditions (like input prices) are fixed in the short term.

Marginal Cost

The charge for the production of one more unit of a product or service.

Marginal Revenue

The enhanced earnings a firm receives from offloading an extra unit of a good or service.

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a good or service, a critical concept in economic decision-making and pricing strategies.