Exhibit 6-22 If a Consumer Moves from Point a to Point

question 29

Multiple Choice

Exhibit 6-22 If a consumer moves from point a to point b on the indifference curve shown in Exhibit 6-22,

• A)the consumer's total utility from food and books remains unchanged
• B)the consumer's total utility from food and books falls
• C)the consumer becomes more willing to give up additional units of books in order to consume one more unit of food
• D)the consumer's willingness to give up additional units of books in order to consume more units of food does not change
• E)the consumer's total utility from food and books rises

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Definitions:

Materials Cost

Materials cost refers to the total expense of raw materials and components used in the manufacturing process of goods.

Equivalent Units

A term used in cost accounting to express the amount of work done during a period by components that were not finished, converting partially completed goods into the equivalent of fully completed units.

Weighted Average Method

An inventory costing method that averages the cost of inventory items to determine the value of goods sold and ending inventory.

Production Period

The phase in which a company is engaged in the creation or manufacturing of goods.