Assume the Total Utilities Corresponding to the First Four Units

question 70

Multiple Choice

Assume the total utilities corresponding to the first four units of a product consumed are 8, 12, 14, and 15, respectively. The marginal utility of the second unit consumed is:

• A) 0.
• B) 4.
• C) 12.
• D) 20.

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Definitions:

Credit Sales

Sales made by a business where the payment is deferred to a later date, often involving credit terms.

COGS

Stands for Cost of Goods Sold and refers to the direct costs attributable to the production of the goods sold by a company.

Payables Turnover Rate

A liquidity metric that measures how quickly a company pays off its suppliers by dividing total purchases by average accounts payable.

Accounts Payable Balance

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.