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.
c
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Indicate whether the statement is true or false
Suppose that the production function for the economy is Y = AK1/4L3/4. Assume that real GDP is $8,000 billion, capital stock is $32,000 billion, and the labor supply is 120 million (or 0.120 billion) workers
Total factor productivity for this economy is A) 16.50 B) 1,016.52 C) 2,083.33 D) 2,933.65