-The Table Above Shows Buffy's Utility from Wooden Stakes and Cloves

question 48

Multiple Choice

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.The marginal utility of which clove of garlic is the largest?

• A) the first clove
• B) the second clove
• C) the fifth clove
• D) the third clove
• E) The marginal utility of all cloves is the same.

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Definitions:

Depreciation Expense

A technique in accounting for distributing the expense of a physical asset across its usable life.

Fixed Costs

Expenses that do not change with the level of activity or output over a short period, such as rent, salaries, and insurance premiums.

Operating Leverage

A measure that evaluates the extent to which a firm can increase its profits by increasing sales, highlighting the fixed versus variable costs in operations.

Financial Break-Even

The point at which total revenues and total expenses are equal, resulting in neither profit nor loss.