An Indifference Curve Cannot Be Positively Sloped Because

question 224

Multiple Choice

An indifference curve cannot be positively sloped because

• A) the law of diminishing marginal utility would be violated.
• B) the substitution effect would be violated.
• C) a point to the right of another point will represent a lower quantity of both goods and a reduction in utility.
• D) a point to the right of another point will represent a higher quantity of both goods and an increase in utility.

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Definitions:

Total Manufacturing Costs

Total manufacturing costs encompass the sum of direct labor cost, direct materials cost, and manufacturing overhead costs incurred in the production of goods.

Direct Materials

Raw materials that are directly traceable to the production of specific goods.

Manufacturing Overhead

All manufacturing costs except direct materials and direct labor, including expenses such as rent, utilities, and depreciation on manufacturing facilities.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, focusing on financial and non-financial measures.