If you are at the point of consumer equilibrium, which of the following is true? a....
If you are at the point of consumer equilibrium, which of the following is true?
| a. | You have maximized your total utility. | b. | You have not yet reached the point where marginal utility is zero. |
|---|---|---|---|
| c. | You have not maximized your marginal utility. | d. | You have not yet reached your maximum total utility. |
Homework Answers
Solution: You have maximized your total utility.
Explanation: The law states that a consumer would be at equilibrium when the ratio of marginal utility in case of each good would be same thus the total utility is maximized with the combination of goods and services
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If you are at the point of consumer equilibrium, which of the
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Question 13 (1 point) In consumer equilibrium, which of the following is true? The marginal utility...
Question 13 (1 point) In consumer equilibrium, which of the following is true? The marginal utility from the consumption of each good is the same. The marginal utility from the consumption of each good is zero. The marginal utility from the consumption of the last dollar's worth of each good is the same. The total utility from the consumption of each good is the same.
1. When a consumer maximizes utility, which of the following is NOT true? a. The indifference curve is tangent to...
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of her income in a way that A consumer equilibrium is a situation in which a...
of her income in a way that A consumer equilibrium is a situation in which a consumer has allocated A. some; increases her marginal utility B. all; maximizes her total utility C. all; maximizes her marginal utility D. some; lowers her household budget
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3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1) the difference between total and marginal utility. C) average utility. D) total utility. 34) The law of diminishing marginal utility states that A) beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. B) price must be lowered to induce firms to supply more of a product C) it will take larger and larger amounts of...
Marginal benefit is the ______ price that a consumer ______ for an extra unit of a...
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The combination of Good A and Good Z that gives consumer equilibrium can be computed by...
The combination of Good A and Good Z that gives consumer equilibrium can be computed by which of the following? a. Marginal utility of Good A/price of Good A = marginal utility of Good Z/price of Good Z b. Using the total utility of Good A/price of Good A = total utility of Good Z/price of Good Z c. Price of Good A/marginal utility of Good A = price of Good Z/marginal utility of Good Z d. Using the marginal...
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MwSt Saleso... Download Loc 1. The change in total satisfaction that experiences from consuming one more unit of a good is called Open with a. total utility. C. elasticity. b. marginal utility d. diminishing utility. is called 2. As more Big Macs are consumed each day, the marginal utility that a person gets from each additional Big Mac tends to a. rise at a steady rate. b. decrease. c. remain constant. d. accelerate. 3. Suppose a consumer wants to obtain...
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Question 13 (1 point) In consumer equilibrium, which of the following is true? The marginal utility from the consumption of each good is the same. The marginal utility from the consumption of each good is zero. The marginal utility from the consumption of the last dollar's worth of each good is the same. The total utility from the consumption of each good is the same.
1. When a consumer maximizes utility, which of the following is NOT true? a. The indifference curve is tangent to the budget line b. Marginal utility per dollar is maximized c. The marginal rate of substitution is equal to the relative price d. The marginal utility per dollar spent is equal across all goods
of her income in a way that A consumer equilibrium is a situation in which a consumer has allocated A. some; increases her marginal utility B. all; maximizes her total utility C. all; maximizes her marginal utility D. some; lowers her household budget
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1) the difference between total and marginal utility. C) average utility. D) total utility. 34) The law of diminishing marginal utility states that A) beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. B) price must be lowered to induce firms to supply more of a product C) it will take larger and larger amounts of...
QUESTION 2 Which of the following statements is true? If total utility is at a maximum, then marginal utility is zero. If total utility is at a maximum, then marginal utility is at a maximum. If total utility is at a maximum, then marginal utility is rising. O if total utility is at a maximum, then marginal utility is at its average value.
MwSt Saleso... Download Loc 1. The change in total satisfaction that experiences from consuming one more unit of a good is called Open with a. total utility. C. elasticity. b. marginal utility d. diminishing utility. is called 2. As more Big Macs are consumed each day, the marginal utility that a person gets from each additional Big Mac tends to a. rise at a steady rate. b. decrease. c. remain constant. d. accelerate. 3. Suppose a consumer wants to obtain...
7. The diamond-water paradox is easily resolved once one recognizes that the price of a product tends to reflect its use value. total value. consumer surplus. marginal value. dodo Which of the following relationships is true? Average variable cost will equal marginal cost when marginal cost is minimized. Average variable cost will equal marginal cost at all relevant level of output. Marginal cost will equal fixed costs when fixed costs are equal to zero. Marginal cost will equal average cost...
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