If a Product Has a High Marginal Utility,then

question 59

Multiple Choice

If a product has a high marginal utility,then

• A)Consumers will not purchase any more of the good.
• B)The demand curve will be downward-sloping.
• C)A consumer is willing to pay a high price for it.
• D)Consumers will also have a low total utility.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Surplus

The amount by which revenue exceeds expenses in a given period, indicating a positive financial state.

Share Option

A right granted by a company to its employees or executives to purchase shares in the company at a preset price, often used as part of compensation packages.

Exercise Price

The specified price at which an option holder can buy (call) or sell (put) the underlying security or commodity.