Which of the Following Statements Regarding the Consumption of More

question 72

Multiple Choice

Which of the following statements regarding the consumption of more than one good is true?

• A)Utility initially increases when consumption of one or more goods increases.
• B)Utility increases when less of only one good is consumed.
• C)Utility decreases when more of only one good is consumed.
• D)Utility does not necessarily increase if more of all goods are consumed.
• E)If less of all goods is consumed, utility might increase, decrease, or stay the same.

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Definitions:

Variable Manufacturing Overhead

Costs of manufacturing that vary directly with the level of production, aside from direct labor and materials.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the volume of production, such as factory rent and salaries of managers.

Direct Labour

The labor costs directly attributable to the production of goods or services, typically wages paid to workers who are directly involved in manufacturing.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.