If a Consumer Is Already Consuming a Good and Is

question 26

True/False

If a consumer is already consuming a good and is willing to pay a maximum of $100 for one more unit of it, then the total benefit from consuming the good is $100.

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Definitions:

Investment Opportunity

A situation or option through which an investor can potentially increase their wealth by allocating resources in a way that generates returns.

Margin

Net operating income divided by sales.

Contribution Margin Ratio

The percentage of each sale that contributes to covering fixed costs, calculated as contribution margin divided by sales revenue.

Fixed Expenses

Expenditures that stay unchanged despite differences in the volume of production or sales, covering items like rental fees, payroll, and coverage costs.