Which of the Following Statements Is True

question 19

Multiple Choice

Which of the following statements is true?
I. Value starts in the marketplace.
II. Cost and value are the same thing.
III. Counting and storing add value to the product.

• A) I and II
• B) I and III
• C) II and III
• D) I
• E) III

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer gains from consuming one more unit of a good or service.

Consumer Behavior

Consumer behavior examines the decision-making processes and actions of individuals or groups in purchasing and using goods and services.

Maximizes Satisfaction

Refers to the act of choosing options that result in the highest level of satisfaction or utility for an individual or group, based on preferences.

Rational

Behaviors and decisions that maximize a person’s chances of achieving his or her goals. See rational behavior.