Which of the Following Is Not True About Utility

question 106

Multiple Choice

Which of the following is not true about utility?

• A) Utility varies from individual to individual.
• B) Marginal utility tends to decline, the more of a good or service is consumed.
• C) When marginal utility is at its maximum, total utility is zero.
• D) All of the above are true about utility.

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Definitions:

Loss Leader

A pricing strategy whereby a business offers a product or service at a lower price in an attempt to attract more customers.

Psychological Pricing

A pricing strategy that plays on the psychological perception of prices by consumers, often using prices that are slightly lower than a round number to encourage purchases.

Value-Based Pricing

A pricing method that involves pricing a product based on how it benefits the customer.

Customer-Led Pricing

A pricing strategy that relies on understanding and responding to the preferences and willingness to pay of the targeted customers.