Multiple Choice
When a consumer spends income so that the ratio of marginal utilities (MUs) of all goods purchased equals the ratio of their prices, the consumer is
A) maximizing marginal utility
B) spending too much on all goods
C) maximizing total utility
D) beyond the point of diminishing marginal utility
E) behaving in opposition to the principal of rational behavior
Correct Answer:
Verified
Correct Answer:
Verified
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Q105: Exhibit 6-17 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 6-17