Which Statement Is False

question 97

Multiple Choice

Which statement is false?

• A)A product's utility to a buyer is measured by how much the buyer is willing to pay for it.
• B)A person would maximize her total utility when she had no consumer surplus.
• C)We will consume a service when its marginal utility is equal to its price.
• D)As the price of a good rises the consumer surplus decreases.

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Definitions:

Financial Break-Even

The point at which a project or company generates enough revenue to cover its operating and financial expenses.

Variable Costs

Costs that vary directly with the level of production or volume of output, such as materials and labor directly involved in a company's manufacturing process.

Required Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account its risk level.

Break-Even Quantity

Break-even quantity is the number of units that must be sold for total revenues to equal total costs, at which point the company makes no profit but also incurs no loss.