With Respect to Water and Diamonds,water

question 6

Multiple Choice

With respect to water and diamonds,water

• A)has a higher marginal utility.
• B)has a lower marginal utility.
• C)has a lower total utility.
• D)is cheaper than diamonds because it has a lower total utility.
• E)none of the above.

---

Definitions:

Profit Center

A business unit or department within an organization that is treated as a separate entity for the purpose of calculating its profitability.

Transfer Prices

Prices charged for the sale of goods or services between divisions or subsidiaries within the same company.

Variable Production Costs

Costs that vary in direct proportion to changes in production volume or levels, such as materials and labor.

Special Parts

Unique or custom components used in manufacturing processes or product assembly that are not commonly available or require specific production.