When Homer Has 5 Doughnuts,his Marginal Value Is 15¢ Per

question 40

Multiple Choice

When Homer has 5 doughnuts,his marginal value is 15¢ per doughnut.We can conclude that Homer

• A) places a value of 3¢ on each doughnut he owns.
• B) needs to purchase more than 5 doughnuts to reach his optimum.
• C) receives 75¢ worth of total satisfaction from his 5 doughnuts.
• D) would refuse to pay more than 15¢ for a sixth doughnut.

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Definitions:

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated based on its return on investment.

Profit Center

A separate business unit or department within an organization that is responsible for generating its own revenue and profits.

Direct Expenses

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor costs.

Sole Benefit

A principle ensuring actions or decisions, especially in fiduciary contexts, are made with the exclusive advantage of the beneficiary in mind.