Assume That the Total Utilities Corresponding to the First Five

question 161

Multiple Choice

Assume that the total utilities corresponding to the first five units of a product consumed are 10, 15, 19, 22, and 24, respectively.The marginal utility of the third unit is:

• A) 19.
• B) 15.
• C) 4.
• D) 3.

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Definitions:

Raw Materials

The basic substances or components that are processed or combined to manufacture finished goods.

Work in Process

Inventory that includes all items that are currently being manufactured but are not yet completed products.

Inventory Transportation

The process and cost involved in moving inventory from one location to another, usually from warehouses to retailers or customers.

Point to Point

A communication or transportation method that directly connects two locations without any stops in between.