The Marginal Benefit Curve from a Good

question 119

Multiple Choice

The marginal benefit curve from a good

• A)shows the benefit a firm receives from producing one more unit of that good.
• B)shows the most a consumer is willing to pay for one more unit of that good.
• C)is upward-sloping.
• D)is bowed outward.
• E)is vertical.

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Definitions:

Variable Overhead Rate

The cost per unit of production or activity that fluctuates with the volume of output, like utilities or material handling expenses.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the volume of production, such as rent, property taxes, and salaries of permanent staff.

Cash Disbursements

Payments made in cash or cash equivalents, covering expenses, debts, or other financial obligations.

Direct Labor-Hours

A measure of the amount of time workers spend on a specific task or production process, directly associated with the manufacturing of a product.