Total utility is maximized when a consumer has spent all of his or her income and
A) spent equal amounts on all goods.
B) marginal utility is maximized.
C) the total utility per dollar from all goods is equal.
D) the marginal utility per dollar from all goods is equal.
D
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A single-price monopolist is producing 8,000 units of output. At that level, price equals $10, average total cost equals $12, and average variable cost equals $8 . In addition, both marginal cost and marginal revenue equal $6 . Which of the following statements is correct in the short run?
a. The firm is earning total revenues equal to $96,000. b. The firm could reduce its loss by shutting down. c. The firm has a loss per unit equal to $4. d. The firm is minimizing its economic loss at $16,000. e. The firm is earning an economic profit equal to $16,000.
If supply decreases and demand increases, then the equilibrium
a. price will decrease and quantity will increase b. price will increase and quantity will decrease c. price will increase and quantity could increase, decrease, or remain the same d. price could increase, decrease, or remain the same and quantity will increase e. price will increase, decrease, or remain the same and quantity will decrease