The Table Given Below Depicts the Total Utility Derived from the Consumption

question 50

Multiple Choice

The table given below depicts the total utility derived from the consumption of a good. Table 6.1

-If one were to plot the data from Table 6.1 (with utility on the vertical axis and quantity of the good on the horizontal axis) :

• A)the total utility curve would begin to decline after the second unit of the good.
• B)the marginal utility curve would begin to decline after the third unit of the good.
• C)the marginal utility curve would intersect the horizontal axis at the third unit of the good.
• D)the marginal utility curve would intersect the horizontal axis at the second unit of the good.
• E)the total utility curve would rise from the first unit to the fifth unit.

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Definitions:

Price-earnings Ratio

The price-earnings ratio (P/E ratio) is a valuation metric comparing a company's current share price to its per-share earnings, helping investors assess the value of a stock.

Value Of A Right

The theoretical financial value of a right given to existing shareholders to purchase additional shares at a discount before a new issuance.

Rights Offering

A method by which a company offers new shares to its existing shareholders in proportion to their current shareholding, typically at a discount to the current market price.

Market Price

Market price is the current price at which a security or commodity can be bought or sold in a public market.