What Is Utility

question 6

Multiple Choice

What is utility?

• A) the satisfaction a person gets from the consumption of a good
• B) a measure of production efficiency
• C) the difference between what a consumer is willing and able to pay for a good
• D) a measure of the amount of "need" people have for a good

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Definitions:

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Comparative Income Statement

A financial statement that compares income, expenses, and net income over different periods, helping to identify trends and assess performance.

Variable Cost

A cost that varies with the level of output or activity, such as raw materials, labor, and utility expenses.