Scarcity Raises Both Price and Marginal Utility but Generally Reduces

question 138

True/False

Scarcity raises both price and marginal utility but generally reduces total utility.

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Definitions:

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed costs in a company's cost structure.

Breakeven Point

is the level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.

Business Risk

Variation in a company’s financial performance caused by changes in business conditions.