The Below Table Shows the Average Utility (In Utils) Obtained

question 21

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Suppose a friend gives you two pieces of gum, and you decide to have one piece now and save the other for tomorrow. You do this because:

• A)the total utility you get from the two pieces of gum will be higher tomorrow.
• B)the marginal utility you get from the second piece will be higher tomorrow.
• C)the marginal utility you get from the second piece will be higher today.
• D)the marginal utility you get from the first piece will be less today.
• E)the total utility you get from the two pieces will be less tomorrow.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Unsold Units

Inventory items that have been produced or acquired but have not yet been sold to customers.

Selling Price

The price at which a product or service is sold to customers, determined by factors like cost, demand, competition, and market conditions.

Variable Costs

Expenses that vary in relation to the amount of products or services a company generates.