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If an Individual Is Maximizing His or Her Utility,his or Her

Question 9

Multiple Choice

If an individual is maximizing his or her utility,his or her marginal rate of substitution of leisure hours for consumption will be:


A) equal to one divided by his or her wage rate.
B) greater than one divided by his or her wage rate.
C) equal to his or her wage rate.
D) less than his or her wage rate.

Correct Answer:

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