Marginal Utility (MU) describes Utility gain from all consumption Extra output d
ID: 2494359 • Letter: M
Question
Marginal Utility (MU) describes Utility gain from all consumption Extra output divided by extra utility Output divided by price Extra utility obtained from each additional unit consumed Another term to describe utility is Consumption Demand Satisfaction Opportunity costs The consumer who maximizes utility will do so when and all income is spent MUa = MUb TUa = Tub MUa/Pa = MUb/Pb TUa/Pa = Tub/Pb The unit of measure of utility is Common across all people Common for all those in a similar type of economy Subjective to each individuals Determined by government standards What is the marginal utility of the third sub-sandwich 25 20 15 10 5 If the explicit cost for a firm to produce a unit of output is six dollars and the firm sells 200 thousand units of output at the price of nine dollars per unit, the firms accounting profit is $600,000 $850,000 $1.2 million $1.8 million Implicit costs are The costs of using economic resources that the producer hires for rent The opportunity cost of using economic resources already in the possession of the producer Production costs only considered by accountants Cost that are variable in the short-run but fixed in the long-run Accounting profits are total revenue minus All relevant opportunity costs Relevant explicit and implicit costs Explicit costs and all relevant opportunity costs Relevant explicit costs A fixed cost Is present in the short-run Increases as the level of output increases Decreases as the level of output increases Dose not vary with the level of productionExplanation / Answer
1. D
2. C
3. C
4. C
5. E
6. A
7. B
8. D
9. D