If We Are Graphing Total Utility, Then the Total Utility

question 332

Multiple Choice

If we are graphing total utility, then the total utility curve will

• A) always be increasing.
• B) always be decreasing.
• C) be increasing as long as marginal utility is positive.
• D) be horizontal if marginal utility is positive.

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Definitions:

In-The-Money

A term describing an options contract that has intrinsic value; for a call, when the underlying asset's price is above the strike price, and for a put, when it's below.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Stock Price

The current price at which a particular stock is bought or sold in the market.

Exercise Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.