Total Utility Increases If One More Unit of a Product

question 98

True/False

Total utility increases if one more unit of a product is purchased and marginal utility is positive.

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Definitions:

Units Sold

A measure of the quantity of inventory items that a company has sold to its customers within a particular period.

Prime Cost

The combined cost of direct materials and direct labor involved in manufacturing a product.

Period Costs

Expenses directly tied to a specific time period, such as rent, utilities, and administrative salaries, and not directly to the production process.

Units Sold

The number of individual items that have been sold over a specified period.