To Calculate Marginal Utility, Divide the Change in Total Utility

question 153

Multiple Choice

To calculate marginal utility, divide the change in total utility by

• A) the number of units consumed.
• B) the price of the product.
• C) the change in the number of units consumed.
• D) the consumer's subjective level of preference.

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Definitions:

Standards

Established norms or requirements that are used as a basis for comparison or compliance.

Credit

A form of financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, typically with interest.

Accounts Receivable Period

Also known as the average collection period, it refers to the average number of days it takes a company to collect payments from its credit sales.

Collecting Receivables

Collecting receivables involves the process or steps taken by a business to ensure that payments are received from customers for goods or services provided on credit.