If Total Utility Increases at a Decreasing Rate as a Consumer

question 289

Multiple Choice

If total utility increases at a decreasing rate as a consumer consumes more coffee, then marginal utility must

• A) remain constant.
• B) increase also.
• C) decrease.
• D) be negative.

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Definitions:

Cost of Goods Sold

Cost of goods sold (COGS) represents the direct costs attributable to the production of the goods sold by a company.

Periodic Inventory System

An inventory system that updates inventory balances at the end of a period, relying on physical counts to measure stock levels.

Detailed Records

Comprehensive, accurate documentation of transactions, activities, or events, maintained for reference and compliance.

Goods Held for Resale

Refers to items that a company has in its inventory that are purchased with the intention of being sold to customers rather than being used in the production process.