Marginal Utility Is Measured By

question 183

Multiple Choice

Marginal utility is measured by:

• A) a ray from the origin to a point on the total utility curve.
• B) the change in total utility for a 1-unit change in the quantity consumed.
• C) total utility divided by total quantity consumed.
• D) the first utility minus the last utility.
• E) average utility multiplied by the total quantity consumed.

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Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Revenue Centre

A segment, division, or unit of a business responsible for generating revenue, focusing on sales activities rather than profit or cost efficiencies.

Performance Measure

An assessment tool used to evaluate the effectiveness and efficiency of an individual's or organization's actions.

Standard Cost Variances

The differences between the estimated costs of production and the actual costs incurred.