Which of the Following Statements About Utility and Preferences Is

question 225

Multiple Choice

Which of the following statements about utility and preferences is false?

• A)If Sidra prefers tea to coffee and coffee to hot chocolate, then she must prefer tea to hot chocolate.
• B)Preferences can be ranked.
• C)If two individuals, Ingrid and Inez, each consume the same bundle of goods, then both Inez and Ingrid must receive the same utility from the bundle.
• D)Utility cannot be compared across consumers.

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Definitions:

Absorption Costing

A strategy in accounting that involves incorporating costs related to manufacturing, including direct materials, direct labor, and variable and fixed overheads, into the price point of a product.

Production Cost

The total expense incurred in manufacturing a product, including materials, labor, and overhead.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead in the cost of a product.

Variable Costing

Variable costing is an accounting method that only considers variable costs, which change with production levels, in the cost of goods sold and excludes fixed manufacturing overhead.