Marginal Utility Is

question 343

Multiple Choice

Marginal utility is

• A) the utility received by the last consumer of a good.
• B) the total utility received from consuming a given quantity of a good divided by the number of units consumed.
• C) the change in total utility from consuming an additional unit of a good.
• D) the utility received from consuming the first unit of a good.

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Definitions:

Required Rate

A rephrased definition: The minimum return rate required by investors to consider investing in a particular asset or project.

Coupon Interest Rate

Stated rate of interest on a bond, defined as the coupon payment divided by the par value.

Market Value

Market value is the current price at which an asset or company can be bought or sold in the marketplace, reflecting the value the market places on it.

Call Provision

Gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called, the company must pay the bondholders an amount greater than the par value, a call premium. Most bonds contain a call provision.