Solved

Total Utility Is Maximized in the Consumption of Two Goods

Question 31

Multiple Choice

Total utility is maximized in the consumption of two goods by


A) equating the marginal utility for each good consumed.
B) equating the marginal utility per dollar for each good consumed.
C) equating the total utility of each good divided by its price.
D) maximizing expenditure on each good.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q24: A consumer's budget constraint is<br>A)the limited income

Q26: What is the common feature displayed by

Q27: The endowment effect suggests that that people<br>A)have

Q29: Figure 10-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4192/.jpg" alt="Figure 10-4

Q72: A standard which came to the market

Q86: One reason that consumers and businesses might

Q92: Suppose Renee can increase her total utility

Q116: Economists have shown that when the ultimatum

Q179: Table 10-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Table 10-7

Q239: Economists do not think it is possible