Exhibit 6-1 Total Utility for Good X -As Shown in Exhibit 6-1, the Law of Diminishing Marginal

question 118

Multiple Choice

Exhibit 6-1 Total utility for good X $$\begin{array} { | l | r | r | r | r | r | r | } \hline \text { Total utility (utils) } & 0 & 80 & 120 & 148 & 160 & 155 \\\hline \text { Quantity con sumed per day } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline\end{array}$$
-As shown in Exhibit 6-1, the law of diminishing marginal utility is first observed at the:

• A) first unit.
• B) second unit.
• C) third unit.
• D) fourth unit.
• E) fifth unit.

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Definitions:

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly traced to that product.

Traditional Format Income Statements

A type of financial statement that presents the revenues, expenses, and profits or losses of a company over a specific period, formatted in a conventional manner.

Factory Supervisor

An individual responsible for overseeing the operations and workers in a factory, ensuring production targets and quality standards are met.

Wages

Payments made to employees for their labour or services, typically calculated on an hourly, daily, or weekly basis.