With Multiple-Peaked Preferences

question 29

Multiple Choice

With multiple-peaked preferences,

• A)a unique political equilibrium does not exist.
• B)a voting paradox emerges.
• C)all individuals have a point that is most preferred.
• D)all of these answers are correct.

---

Definitions:

Absorption Costing

A financial approach that incorporates every aspect of manufacturing expenses, such as direct materials, direct labor, and all variable and fixed overhead costs, into the price of a product.

Variable Costing

An accounting methodology that assigns only variable costs to inventory, treating fixed costs as expenses of the period.

Operating Income

Refers to the profit realized from a business's core operating activities, excluding deductions of interest and taxes.

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.