The law of diminishing marginal utility states that as more units of a good are consumed, the marginal utility from the consumption of the next unit becomes lesser. John's total utility from the consumption of two ice creams is 10, and his total utility from the consumption of three ice creams is 9.7.
<h3>What does the law of diminishing marginal utility State?</h3>
- According to the law of declining marginal utility, when consumption rises, the marginal utility gained from each extra unit decreases, all other things being equal.
- The incremental improvement in utility brought on by consuming one more unit is known as marginal utility.
<h3>Which law does the law of diminishing marginal utility affect?</h3>
- According to the law of diminishing marginal utility, a good or service's marginal utility decreases the more of it is used by a person.
- Consuming increasing quantities of a good gives economic actors less and less pleasure.
<h3>What is law of diminishing marginal returns?</h3>
- According to the law of declining marginal returns, increasing the number of production factors leads to lesser increases in output.
- The addition of any more of a production element after a certain level of capacity utilization would unavoidably result in lower per-unit incremental returns.
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Answer:
The correct statement is: "The fixed cost per unit will decrease when volume increases."
Explanation:
Total fixed costs remain the same within a relevant range, but the <em>fixed cost per unit</em> decreases as production increases, because the same fixed costs are spread over more units produced.
Answer:
The correct answer is letter "D": All of the above.
Explanation:
Accounting is the activity by which the economic transactions of a company are registered in ledgers that together form a group where information is recorded to be summarized at the end of an accounting period in Financial Statements. That report is useful for top managers since they can make decisions about what the firm should implement or replace to maximize the firm's resource allocation and profits.
Answer:
e. point directly to the kinds of offensive/defensive actions it can use to exploit its competitive strengths and reduce its competitive liabilities.
Explanation:
A competitive strength assessment is defined as a weighted comparism of a business's strengths and weaknesses compared to the competition. The knowledge gained can be used to improve on weak areas.
Competitive advantage is the traits that set a business aside and gives it an edge over others. Competitive strength assessment evaluates the competitive advantages of a company. Therefore it shows the kinds of offensive/defensive actions it can use to exploit its competitive strengths and reduce its competitive liabilities.
Answer:
The correct answer is letter "A": are rarely worth their face value.
Explanation:
Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.
<em>Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.</em>
