Total Utility Can Be Thought of as the

question 61

Multiple Choice

Total utility can be thought of as the

• A)total satisfaction derived from a bundle of goods.
• B)minimum amount of money a consumer is willing to spend on a bundle of goods.
• C)additional satisfaction a consumer receives from the marginal unit of a good.
• D)willingness to pay for the marginal unit of a good.

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Definitions:

Direct Materials

Raw materials that can be directly identified with the production of specific goods or services.

Variable Cost

Costs that vary directly with the level of production or volume of operations.

Sales Volume

The quantity of products or services sold by a business within a specific time period.

Fixed Costs

Expenses that do not change with an increase or decrease in the amount of goods or services produced.