As a consumer allocates income between Good A and Good B,total utility is maximized when _____
A) the marginal utility of Good A = the marginal utility of Good B.
B) the marginal utility of Good A = the marginal utility of Good B = 0.
C) the price of Good A = the price of Good B.
D) the marginal utility of Good A/the price of Good A = the marginal utility of Good B/the price of Good B = 0.
E) the marginal utility of Good A/the price of Good A = the marginal utility of Good B/the price of Good B.
Correct Answer:
Verified
Q63: Suppose the marginal utility of a unit
Q64: Suppose John goes to a wedding reception
Q65: Exhibit 6.2 Q66: Suppose Sally allocates her budget between two Q67: If Darlene's marginal benefit from consuming another Q69: Suppose Enid could increase her total utility Q70: According to the utility theory,in "consumer equilibrium," Q71: A consumer's utility is maximized when the Q72: If Jennie spends her income on ice Q73: Table 6.6
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents