An Optimizing Consumer Makes Her Purchase Decisions Based on ________

question 57

Multiple Choice

An optimizing consumer makes her purchase decisions based on ________.

• A) the total benefits at various levels of consumption
• B) the benefits per dollar spent at the margin
• C) the total benefits per dollar spent at various levels of consumption
• D) the benefits from the first dollar spent on consumption

---

Definitions:

Materials Cost

The cost of materials that are used in the production of goods; a component of the total cost of goods sold.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and cost of goods sold based on the average cost of all goods available for sale during the period.

Conversion Costs

Combined costs of direct labor and manufacturing overhead, representing the costs to convert raw materials into finished goods.

Weighted-Average Method

An inventory costing method that takes the average cost of all goods available for sale during the period, weighted by the quantities purchased at different times.