When a Person Tries to Judge What Action Would Create

question 16

True/False

When a person tries to judge what action would create the greatest good for the greatest number, he or she is using a utilitarian scheme.

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Definitions:

Average Revenue

The revenue a company generates per unit of output sold, calculated by dividing total revenue by the number of units sold.

Perfectly Elastic Demand Curve

A demand curve with infinite elasticity, where consumers are willing to purchase any amount of a product at a certain price, but none at any slightly higher price.

Output

Refers to the total amount of goods or services produced by an individual, firm, or country within a specific period.

Firm

A business organization, such as a corporation or partnership, that sells goods or services for profit.