Marginal Utility

question 18

Multiple Choice

Marginal utility

• A) Is the change in a consumer's utility resulting from the addition of a very small amount of some good
• B) Is the total utility a resulting from consuming some good, divided by the amount consumed
• C) Is the change in a consumer's utility resulting from the addition of a very small amount of some good, divided by the amount added
• D) Is the change in a consumer's utility resulting from the addition of a very small amount of some good, divided by the total amount being consumed

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Definitions:

Activity Pools

Groups of related business activities in activity-based costing, where costs are pooled by common characteristics to allocate them accurately to products or services.

Factory Overhead Allocated

The distribution of manufacturing indirect costs to products based on a predetermined rate or method.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process, often used to allocate labor costs to products.

Multiple Production

A manufacturing strategy involving the concurrent production of several items or product lines in a single facility.