Marginal Utility

question 20

Multiple Choice

Marginal utility:

• A)explains why individuals find it difficult to maximize their total utility.
• B)is the change in total utility that comes from consuming one additional unit of a good or service.
• C)can only be applied to situations in which individuals can choose among several goods or services.
• D)is the loss in utility an individual experiences after making a bad decision.

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Definitions:

Too Many Bosses

A situation in which an employee is required to report to multiple supervisors, often leading to confusion and conflict.

Line of Authority

Refers to the formal hierarchy within an organization that dictates who has the power to make decisions and who reports to whom.

Strategic Orientation

An approach or planning framework that aligns an organization's resources and activities with its long-term goals and competitive environment.

Cost Conscious

The mindset of being aware of costs and striving to minimize expenses without sacrificing quality or value.