Which of the Following Statements About Utility Is True

question 6

Multiple Choice

Which of the following statements about utility is true?

• A)It is the same as usefulness.
• B)Total utility diminishes as soon as additional units of a good are consumed.
• C)Utility is objectively determined, meaning a good should provide the same satisfaction to whomever consumes it.
• D)Utility is difficult to measure quantitatively.

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Definitions:

Book Value

The value of an asset according to its balance sheet account balance, which represents the cost of the asset minus any depreciation, amortization, or impairment costs.

Disposal

Disposal refers to the act of selling, discarding, or removing an asset from a company's balance sheet, often due to obsolescence, excess, or replacement.

Long-Lived Asset

A long-lived asset is a tangible or intangible asset with a useful life of more than one year, used in the operating activities of a business, such as buildings, machinery, or patents.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net assets.