Multiple Choice
Assume that the marginal utility from good A is 10 units and that the price of good A is $5 per unit. The marginal utility from good B is 15 units and its unit price is $7. In this situation, a utility-maximizing consumer should
A) consume more of good A.
B) consume only good B.
C) consume more of good B.
D) consume neither good A nor good B.
Correct Answer:
Verified
Correct Answer:
Verified
Q449: What is the marginal rate of substitution
Q450: A consumer optimum is characterized by<br>A) the
Q451: The total utility of consuming 6 units
Q452: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q453: What is the principle of diminishing marginal
Q454: The rate of change in total utility
Q455: The want-satisfying power of a good or
Q456: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q457: Marginal utility can be thought of as<br>A)
Q458: Despite the fact that water is necessary