When Marginal Utility Is Zero, Total Utility Is

question 8

Multiple Choice

When marginal utility is zero, total utility is

• A) increasing.
• B) at its maximum.
• C) at its minimum.
• D) decreasing.

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Definitions:

FIFO Method

The "first-in, first-out" inventory costing method, where the costs of the earliest goods purchased or produced are the first to be expensed.

Periodic System

An inventory system in which updates to inventory levels are made on a periodic basis rather than continuously.

Rising Prices

An economic situation where the general level of prices for goods and services increases over a period of time.

Costing Method

It is an accounting approach to determine the cost of a product or service, including methods such as standard costing, activity-based costing, and others.