Total utility is maximized when _____
a. the marginal utility is maximized
b. the marginal utility is the same for all goods consumed
c. the marginal utility per dollar expenditure is maximized
d. the marginal utility per dollar expenditure is the same for all goods consumed
e. any change in purchases from good A to good B reduces marginal satisfaction
d
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The word "util" has been used by economists in the past as an objective measure of utility. Today economists believe that
A) the util truly is an objective, rather than a subjective, measure of utility. B) utility can be measured objectively because people can use prices of different goods to measure utility. C) utility cannot be measured objectively. D) all of the important conclusions of the economic model of consumer behavior depend on utility being measured objectively.
Individuals must make choices because
a. resources are scarce and wants are limited b. resources and wants are unlimited c. assets and wealth are distributed unevenly d. resources are scarce and wants are unlimited e. inflation usually outpaces income growth