If the Marginal Value of 1 Bottle of Shampoo Is

question 21

Multiple Choice

If the marginal value of 1 bottle of shampoo is 4 soap bars,then

• A) the absolute price of shampoo is 4 times the absolute price of a soap bar.
• B) trading away 1 bottle of shampoo for 4 bars of soap will not affect the consumer's level of satisfaction.
• C) the consumer's optimum contains 4 times as many bars of soap as bottles of shampoo.
• D) shampoo provides 4 times as much satisfaction to the consumer as does soap.

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Definitions:

Labour And Materials

Labour and materials refer to the primary inputs in the production of goods and services; labour represents human effort provided by employees, while materials include all tangible resources used in production.

Fixed Costs

Constant costs that do not vary with changes in production or sales levels, like property rent, worker compensation, and policy premiums.

Tax Rate

The rate at which a person or company is charged by the government on their earnings or gains.

Equivalent Annual Cost

A financial metric used to compare the cost-effectiveness of different investments with different lifespans or costs.