If a Consumer Receives 22 Units of Marginal Utility for Consuming

question 183

Multiple Choice

If a consumer receives 22 units of marginal utility for consuming the first can of soda, 20 units from consuming the second, and 15 from the third, the total utility of consuming the three units is

• A)57 utils
• B)35 utils.
• C)15 utils.
• D)unknown as more information is needed to determine the answer.

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Definitions:

Salvage Value

The anticipated residual value of an asset after it has been fully depreciated and is no longer in use.

Net Working Capital

The variance between a corporation's current assets and its current debts, highlighting its short-term financial status.

Operating Cash Flow

Operating Cash Flow is the cash generated from the normal operations of a business, reflecting its ability to generate sufficient positive cash flow to maintain and grow its operations.

Depreciation Expense

The allocated portion of the cost of a fixed asset, charged as an expense over its useful life.