The Utility Function Is Constructed in Such a Way That

question 109

Multiple Choice

The utility function is constructed in such a way that consumption exhibits:

• A) diminishing marginal utility.
• B) total satisfaction.
• C) a single period level of utility.
• D) total lifetime income.
• E) diminishing utility.

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Definitions:

Conglomerate Merger

A merger between companies in unrelated businesses.

Vertical Merger

A merger between companies when one is a supplier or a customer of the other.

Horizontal Merger

A merger between companies in the same line of business, usually as competitors.

Tender Offer

An offer to purchase some or all of shareholders' shares in a corporation at a specific price for a certain period.