If the Total Utility from Consuming Five Units of a Product

question 144

Multiple Choice

If the total utility from consuming five units of a product is 245 and the marginal utility of a sixth unit is 5, then the total utility from consuming six units would be

• A)240.
• B)250.
• C)49.
• D)1,225.

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Definitions:

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership of a majority of voting rights.

IFRS 3

An international financial reporting standard that provides guidance on accounting for business combinations, requiring acquired assets and liabilities to be recorded at fair value.

Business Combinations

Transactions or events in which one entity gains control over one or more other entities, often involving mergers and acquisitions.

Consolidated Income Statement

A financial document that aggregates the financial performance (revenues, expenses, profits) of a parent company and its subsidiaries.