Which of the Following Is NOT True of Utility

question 229

Multiple Choice

Which of the following is NOT true of utility?

• A) It represents the want-satisfying power of a good.
• B) It is measured using a representative unit called a util.
• C) The utility that a good provides depends on a consumer's preferences.
• D) Utility can be measured objectively.

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Definitions:

Total Product

The total quantity of output that a firm produces, usually within a given period.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Property Insurance

Insurance coverage that provides protection against most risks to property, such as fire, theft, and some weather damages.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.