Which of the Following Statements Does Not Invoke Interpersonal Utility

question 132

Multiple Choice

Which of the following statements does not invoke interpersonal utility comparisons?

• A)The total utility a millionaire derives from $100 is less than the total utility a poor person derives from $100.
• B)The marginal utility a millionaire derives from the one-millionth dollar is less than the marginal utility a poor person derives from the one-hundredth dollar.
• C)For both the millionaire and the pauper, the marginal utility they derive from the one-thousandth dollar is less than the marginal utility they derive from the five-hundredth dollar.
• D)None of the above, because all rely on interpersonal utility comparisons.

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Definitions:

Optimal Maintenance Policy

The most efficient and effective strategy for maintaining equipment or systems, balancing costs with downtime and operational performance.

Inventory

The total amount of goods and materials held by a business to support production, future sales, or servicing.

Downtime

The period during which an equipment, system, or service is not operational or functional, often resulting in productivity or revenue loss.

Product Failure Rate

The frequency at which a product fails within a specified period, often used as an indicator of product reliability.