The Below Table Shows the Average Utility (In Utils) Obtained

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Because incomes are limited, purchasing one thing means not being able to purchase other things. This indicates that:

A) marginal utility diminishes.
B) marginal utility is constant.
C) people will allocate their income among goods so as to achieve the most satisfaction.
D) people will allocate their income among goods so that the marginal utilities of all goods is equal.
E) people will allocate their income among goods so that the marginal utilities of all goods is zero.