The Total Utilities Associated with the First 5 Units of Consumption

question 91

Multiple Choice

The total utilities associated with the first 5 units of consumption of good X are 15, 30, 40, 47, and 50, respectively. What is the marginal utility associated with the third unit?

• A) 15.
• B) 70.
• C) 85.
• D) 10.
• E) 45.

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Definitions:

Accruals

Adjusting entries for either accrued revenues or accrued expenses.

Deferrals

Adjusting entries for either prepaid expenses or unearned revenues.

Asset's Cost

The original financial value of an asset, including purchase price and any expenses incurred to get the asset ready for use.

Expired

Refers to resources or benefits that have been fully used and cannot contribute to future operations.