Suppose Enid could increase her total utility by purchasing one more book and one less video rental.Which of the following is true?
A) The marginal utility of video rentals exceeds the marginal utility of books.
B) The marginal utility of books exceeds the marginal utility of video rentals.
C) The marginal utility of video rentals is negative.
D) The marginal utility per dollar spent on books exceeds that of video rentals.
E) Total utility is at a maximum.
Correct Answer:
Verified
Q71: Exhibit 6-9 Q72: If the price of a good is Q73: When a consumer spends income so that Q74: A utility-maximizing consumer who is considering two Q75: Assume that you allocate your income to Q77: If a good is offered to you Q78: When income is allocated to two goods, Q79: If the marginal utility of each good Q80: A consumer maximizes utility when the marginal Q81: The law of diminishing marginal utility explains
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