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In Spending All His Income, the Consumer Chooses the Bundle

Question 3

Multiple Choice

In spending all his income, the consumer chooses the bundle of goods that maximizes his utility. Which of the following statements will be correct?


A) The marginal utilities of all goods are equal.
B) Expenditures on all goods are equal.
C) The addition to utility of the last unit of the good is equal across all goods.
D) The addition to utility of the last unit of the good per dollar is equal across all goods.

Correct Answer:

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