Glen Is Considering Whether to Paint His House and If

question 63

Multiple Choice

Glen is considering whether to paint his house and if so,what colour to choose.He settles on three options: leave it "as is",paint it brown,or paint it purple.Glen's neighbours are able to easily see his house.The following table shows the monetary values of utility for Glen and his neighbours under the three possibilities.
-Refer to the information above.The ranking of total economic surplus for Glen and his neighbours from highest to lowest is

• A) purple,brown,no change.
• B) brown,no change,purple.
• C) neon purple,no change,brown.
• D) no change,brown,purple.
• E) brown,purple,no change.

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Definitions:

Cost Of Goods Manufactured

The total cost of producing goods during a specific period, including labor, material, and overhead costs, ready for sale.

Raw Materials Purchases

Refers to the total cost incurred by a company for the acquisition of raw materials needed for production during a specific period.

Operating Expenses

Costs incurred during the normal operations of a business, excluding the costs of goods sold.

Just-In-Time Method

A production and inventory strategy that aims to reduce costs by receiving goods only as they are needed in the production process, minimizing inventory levels.