The ________ Curve of an Individual Decision Maker Is a Plot

question 59

Multiple Choice

The ________ curve of an individual decision maker is a plot of their utilities versus the profits.

• A) utility
• B) maximax
• C) posterior
• D) preposterior

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Definitions:

Relevant Range

The range of activity or volume in which the assumptions about fixed costs and variable costs are valid.

Variable Cost

Costs that fluctuate with the level of output, such as materials and labor directly involved in production.

Cost Driver

An element that leads to a variation in the expense associated with an action.

Semivariable Cost

Costs that have both fixed and variable components, changing in response to activity level but not directly proportional to it.