Marginal Utility Is the

question 24

Multiple Choice

Marginal utility is the

• A)Change in total utility obtained by spending one extra dollar on a good or service.
• B)Change in total utility obtained by consuming one extra unit of a good or service.
• C)Change in total utility obtained by selling one extra unit of a good or service.
• D)Utility received from consuming the optimal combination of goods and services.

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Definitions:

Cash Discount

A reduction in the invoice price offered by sellers to buyers for prompt payment of their bill, aimed at encouraging early payment.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing inventory and accounts receivable.

Coupon Payments

Periodic interest payments made by a bond issuer to its bondholders, usually on an annual or semi-annual basis.

Sold at a Discount

refers to selling something for less than its usual or advertised price, often to encourage quick sales or because the item is slightly damaged or outdated.