Refer to RJB Builders

question 167

Multiple Choice

Refer to RJB Builders. What was the materials usage variance?

• A) $2,000 U
• B) $2,000 F
• C) $1,900 U
• D) $1,900 F

---

Definitions:

Duality

Alternative way of looking at the consumer’s utility maximization decision: Rather than choosing the highest indifference curve, given a budget constraint, the consumer chooses the lowest budget line that touches a given indifference curve.

Marginal Utilities

Refers to the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Lagrangian Multiplier

A method employed in constrained optimization issues to identify the function's maximum or minimum while adhering to certain restrictions.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.