Utility is maximized for the consumption of two goods when:
a. the price of the first good equals the price of the second good
b. the marginal utility per dollar spent is equal for both goods consumed.
c. the quantity consumed of the first good equals the quantity consumed of the second good.
d. the total utility of the first good equals the total utility of the second good.
b
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If a given value of x is associated with a particular value of y,
a. then x causes y b. then y causes x c. then x and y must be logically connected d. there are no other variables that affect the value of y e. there may be no causal relationship between x and y
Which of the following is the best definition of a spot market?
a. A market in which a good is bought or sold with the idea that the price will increase in the future b. A market in which a good is bought or sold with the hope that the price will decrease in the future c. A market in which prices do not fluctuate up or down very easily d. A market in which a good is bought or sold for immediate delivery or consumption e. A market in which the good being traded is used to remove spots on clothes