Which of the Following Statements Is True About Utility

question 107

Multiple Choice

Which of the following statements is true about utility?

• A) Economists measure utility with a unit they refer to as an utte.
• B) Utility is easy to compare across individuals.
• C) All products produce the same utility.
• D) Everyone receives the same level of satisfaction from the same good or service.
• E) Some products produce more utility than others.

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Definitions:

X-Inefficiency

A concept where a firm operates with higher costs than are necessary due to lack of competition or internal inefficiencies.

Economies Of Scale

Cost savings that accrue to firms from upscaling their production operations, where there's a typical decrease in the cost per unit with larger production volumes.

Average Cost

The sum of all production expenses divided by the quantity of items made, showing the expense for each unit of product.

Purely Competitive Equilibrium

A market state characterized by a perfect match between supply and demand, resulting in an optimal distribution of resources without any single buyer or seller influencing the price.