Utility Is

question 41

Multiple Choice

Utility is

• A)easily measured because all people derive the same utility from consumption
• B)easily measured because it is an objective concept
• C)easily measured because it is a subjective concept
• D)hard to measure because it is a subjective concept
• E)hard to measure because it is an objective concept

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Definitions:

Fixed Cost

Costs that do not change with the level of output produced, such as rent or salaries, remaining constant regardless of business activity levels.

Total Revenue

The total amount of money generated by a firm or entity from its business activities, calculated by multiplying the price by the quantity sold.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Profitable

Generating revenue that exceeds the expenses, costs, and taxes needed to sustain the activity.