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A Car Dealer That Maintains a Large Number of Automobiles

question 53

Multiple Choice

A car dealer that maintains a large number of automobiles on their lot so that they avoid losing a sale to another dealer who has the make and model a given customer wants is engaged in ________.


Definitions:

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a particular amount of goods or services.

Gasoline

A volatile, flammable liquid derived from petroleum, primarily used as fuel in internal combustion engines.

Marginal Utility

The additional satisfaction or benefit (utility) that a person receives from consuming one more unit of a good or service.

Utils

A hypothetical unit of measurement used in economics to quantify utility or the satisfaction gained from consuming goods and services.

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