Consider the Utility Function $\mathrm { U } = \min ( 5 \mathrm { x } , 7 \mathrm { y } )$

question 80

Multiple Choice

Consider the utility function $\mathrm { U } = \min ( 5 \mathrm { x } , 7 \mathrm { y } )$ .To increase satisfaction the consumer must consume

• A)at least 5 units more of
• B)at least 7 units more of y
• C)more of both x and y
• D)more of either x or y

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Definitions:

Variable Costing

An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.

Unit Product Cost

Unit product cost is the total expense incurred to produce, assemble, and prepare a single unit for sale, encompassing both direct costs and allocated overheads.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing costs in the cost of a product, used for external reporting.

Unit Product Cost

The combined sum of fixed and variable expenses incurred in the creation of one unit of a product.