If Total Utility Is Unchanged, Then Marginal Utility Is

question 357

Multiple Choice

If total utility is unchanged, then marginal utility is

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

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Definitions:

Compounded Semi-Annually

Refers to the process where interest is added to the principal balance of an investment, loan, or deposit twice a year, leading to interest earning on interest previously accumulated.

Initial Investment

The upfront sum of money used to start an investment or project.

Compounded Daily

An interest calculation method where interest is added to the principal sum daily so that each day's interest earnings also earn interest in the future.

Nominal Interest Rate

The stated or named interest rate on a loan or investment, not accounting for inflation or compounding effects.