A consumer maximizes total utility from a given amount of income when the
A. Marginal utility per dollar obtained from the last unit of each good is the same.
B. Total utility obtained from each product is the same.
C. Marginal utility of the last unit of each good is the same.
D. Amount spent for each product is the same.
Answer: A
You might also like to view...
In common value auctions
a. Bidder do not know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item differs across bidders
The Gulf Cartel and Sinaloa Cartel are the two major cartels in illegal drug trade in Mexico. Although, each of these cartels are better off sharing the market, they have an incentive to try to take the entire market. In which of the following ways is cheating among these cartel members dealt with in this region?
a. Through government taxation policy b. Through legally enforceable contracts c. Through restrictions on the supply of inputs used by the firms d. Through output quota and price ceiling e. Through violence and drug wars