As More of a Good Is Consumed,marginal Benefit ________ and as More

question 320

Multiple Choice

As more of a good is consumed,marginal benefit ________ and as more of a good is produced,marginal cost ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases
• E) does not change; does not change

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Definitions:

Face Amount

The nominal or dollar value stated on a financial instrument or security, such as the original amount on a bond or insurance policy.

Bond Redemption

The process of repaying the principal amount of a bond at its maturity date.

Carrying Value

The book value of an asset on a company's balance sheet, calculated as the asset’s original cost minus accumulated depreciation and impairment charges.

Face Value

The nominal value of a security as stated by the issuer, often associated with bonds or par value of stocks.