All of the Following Are Examples of Indirect Costs That

question 154

Multiple Choice

All of the following are examples of indirect costs that can be classified as being variable costs except:

• A) Utilities.
• B) Material handling costs.
• C) Production supervisor salaries.
• D) Transportation costs.

Understand how the demand curve is derived from diminishing marginal utility.

Understand the implications of changes in income and prices on consumer equilibrium.

Recognize the role of time and opportunity cost in consumer behavior.

Explain the diamond-water paradox and the importance of marginal utility in determining price.