The next step is to decide about the resources to be committed.
Answer:
Purchase the Ice Cream Cone for a net addition to marginal utility of $1
Explanation:
Marginal Utility is explained as the level of satisfaction that is added when a consumer consumes an additional unit of a product or patronizes a service. It determines the number of items an individual is willing to purchase based on his additional satisfaction from every extra item.
If the additional item leads to an increase in total utility then it is called positive marginal utility and when it decreases total utility then it is called negative marginal utility.
Oliver based on marginal analysis should purchase the Ice Cream Cone for the difference in value of $5 to 6$, that is the net additional marginal utility of $1, but should not purchase the box of chocolate because the marginal utility does not change it remains $10
Answer:Revenue Test, profit or loss test and asset test are tests to determine which operating segments require separate disclosure.
Explanation:Revenue Tests is the rough determination of the price elasticity of demand for a company's product, this is done by evaluating changes in income that may arise from price change.
Profit or loss test determines if the business is profitable or not.
An asset test is the company's ability to meet it's short term legal responsibilities.
