Utility Is

question 11

Multiple Choice

Utility is:

• A) useful in comparing the relative satisfaction different consumers get from a particular good.
• B) useful in predicting when to put an item on sale.
• C) useful in quantitatively describing a person's preferences for one good over another.
• D) an interesting concept, but not really useful for anything.

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Definitions:

Product Price

The financial outlay necessary to acquire a certain item or service.

Competitive Firm

A business that operates in a market where it has multiple competitors, and no single firm can influence the market price of goods or services.

Short Run

A time period in economics where at least one input is fixed, restricting the ability to adjust production levels fully.

Long Run

A timeframe during which all production factors and expenses can change, permitting adjustments to all inputs.