Which of the Following Statements Captures the Meaning of Transitivity

question 160

Multiple Choice

Which of the following statements captures the meaning of transitivity of preferences?

• A)If A is preferred to B, then B is less preferred than A.
• B)If A is preferred to B, and B is preferred to C, then A is preferred to C.
• C)If A is preferred to B and B is preferred to C, then the preference for A over B is stronger than the preference for B over C.
• D)If A is preferred to C, then there exists B such that A is preferred to B and C is preferred to A.

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Definitions:

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred, such as administrative expenses.

Product Cost

The total expense incurred in creating a product, including materials, labor, and overhead costs.

Indirect Cost

Expenses that are not directly attributable to a specific product or service, such as administrative and facility costs.

Direct Cost

Expenses that can be directly traced to the production of a specific good or service, such as materials and labor.