Which of the Following Is True of Units of Utility

question 95

Multiple Choice

Which of the following is true of units of utility?

• A)Each unit is worth $1.
• B)They cannot be compared across consumers.
• C)They apply to goods but not to services.
• D)They do not exist for very wealthy individuals.
• E)They are negative for inferior goods.

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Definitions:

Lost Volume Seller

A seller who, despite making a sale to a new customer, still suffers a loss because they would have been able to make that sale in addition to the original sale that was canceled or breached.

Good Faith

The sincere intention to be fair, open, and honest, regardless of the outcome of an agreement or transaction.

Specific Performance

A court order compelling a party to execute a contract according to its precise terms when monetary compensation is inadequate.

Picasso Painting

An artwork created by Pablo Picasso, a Spanish painter and sculptor known for co-founding the Cubist movement.