If Your Total Satisfaction Increases When You Consume Another Unit

question 177

Multiple Choice

If your total satisfaction increases when you consume another unit, your marginal utility must be

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

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Definitions:

Market Imperfections

Occur when conditions for perfect market competition are not met, leading to inefficiencies such as monopolies or information asymmetries.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, to shareholders.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.

Dividend Cuts

A reduction in the dividend payments issued by a company, which can signify financial distress or a reallocation of funds.