Howard Has Just Smoked a Cigarette

question 100

Multiple Choice

Howard has just smoked a cigarette.If he chooses to smoke a second one:

• A) he will experience a drop in total utility.
• B) he is not acting rationally.
• C) he will derive less marginal utility from it than his first.
• D) None of these is true.

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Definitions:

Expenses

The outflows or using up of assets or incurring of liabilities during a period from delivering goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.

FOB Shipper's Dock

A shipping term indicating that the buyer assumes responsibility for the goods once they are shipped, and the goods are considered delivered at the shipper's dock.

Raw Materials

Basic materials that are used in the production process to create goods and products.

Ethical Standards

Principles that guide conduct in business and professional practices to ensure fairness, transparency, and integrity.