To create their Deluxe Beef Sandwiches,Robbie's Roast Beef finely slices prime roast beef,stacks it on a sesame bun,adds special seasonings,cheese,onions,and mushrooms.The value added by Robbie's when it combines these ingredients to make a sandwich is known as:
A)marginal utility.
B)the analytic function.
C)form utility.
D)consumer surplus.

Question

Quizplus · Accepted Answer

The value added by Robbie's is known as form utility, which is the utility created by combining and assembling different components to create a finished product that is more useful and valuable to consumers. In this case, Robbie's creates a delicious sandwich by combining roast beef, cheese, onions, mushrooms, and seasonings, which makes the sandwich more appealing and valuable to customers compared to just the individual ingredients on their own. Marginal utility refers to the additional satisfaction or usefulness gained from consuming one more unit of a product, and consumer surplus refers to the difference between the price that a consumer is willing to pay for a product and the actual price they pay. The analytic function is not related to the concept of value added in this context.

To Create Their Deluxe Beef Sandwiches,Robbie's Roast Beef Finely Slices