An Individual's Demand Curve Slopes Down Because

question 250

Multiple Choice

An individual's demand curve slopes down because

• A) marginal utility falls as price falls.
• B) the value of the marginal utility falls as the price falls.
• C) of the rule that the marginal utility of the last unit must equal the price.
• D) of the law of diminishing marginal utility and the rule of equal marginal utilities per dollar.

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Definitions:

Stockholders' Equity

The ownership stake of shareholders in a corporation, which is the value of the company's assets minus its liabilities.

Average Operating Assets

An indicator of how efficiently a company is using its assets to generate earnings during a period, calculated as the average of the beginning and ending values of the assets for the time period.

Minimum Required Rate Of Return

The lowest return on investment that an investor is willing to accept for a particular investment, often considering the risk involved.

Net Operating Income

The total profit of a business after operating expenses have been deducted, but before interest and taxes.