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) consumer surplus.
B) the analytic function.
C) marginal utility.
D) form utility.

Question

Quizplus · Accepted Answer

The value added by Robbie's Roast Beef in combining the ingredients to make a sandwich is known as form utility. This is because the raw ingredients (roast beef, sesame bun, cheese, onions, mushrooms) on their own would not provide the same level of satisfaction as a neatly assembled sandwich. By combining these ingredients and arranging them in a specific way, Robbie's Roast Beef is creating a product with enhanced form utility, which customers are willing to pay for. It is not consumer surplus as that  refers to the difference between the maximum price a consumer is willing to pay for a product and the actual price they pay, nor is it the analytic function or marginal utility.

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