Suppose Renee Can Increase Her Total Utility from Consuming Video

question 92

Multiple Choice

Suppose Renee can increase her total utility from consuming video rentals and books by buying one more book and renting one fewer video.Which of the following is true?

• A)The marginal utility of video rentals is negative.
• B)The marginal utility per dollar spent on books exceeds that of video rentals.
• C)The marginal utility of the last book consumed exceeds the marginal utility of the last video rental consumed.
• D)The marginal utility of the last video rental consumed exceeds the marginal utility of the last book consumed.

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Definitions:

FIFO

"First In, First Out," an inventory valuation method that assumes the first items placed in inventory are the first sold.

LIFO

Last In, First Out, an inventory valuation method where the latest items added to inventory are the first to be sold.

Cost of Goods Sold

Cost of Goods Sold (COGS) refers to the direct costs attributable to the production of the goods sold in a company.

Periodic Inventory System

An inventory accounting system where updates are made at intervals, such as monthly or annually, rather than continuously.