A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the: A-...
A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the:
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D- Average utility per dollar spent is the same for all goods |
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Homework Answers
Answer : The answer is option C.
In case of consumer's fixed income if the marginal utility for each spent dollar is equal for all purchased goods then the consumer's utility is maximum. Therefore, option C is correct.
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A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the: A-...
3) he theory of consumer behavior assumes that consumers attempt to maximize A) marginal utility. 1)...
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...
1. When a consumer maximizes utility, which of the following is NOT true? a. The indifference curve is tangent to...
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
Indicate whether the following statements are True or False e)If Tom's total utility from watching one...
Indicate whether the following statements are True or False e)If Tom's total utility from watching one more minute of television increases but the increase for each additional minute is smaller tha the previous minute,he has diminishing marginal utility f)As a person consumes more and more slices of pizza, the marginal utility of each extra slice diminishes g)A consumer will maximize utility when all income is spent and the marginal utility is equal for all goods h)When Kathryn spends her entire...
A consumer who has a limited budget will maximize utility or satisfaction when the 1 Multiple...
A consumer who has a limited budget will maximize utility or satisfaction when the 1 Multiple Choice 0 ratlos of the marginal utility of each product purchased divided by its price are equal. 0 total utility derived from each product purchased is the same. 0 marginal utility of each product purchased is the same. 0 price of each product purchased is the same.
B 1. Suppose that a 20 percent increase in the price of normal good Y causes...
B 1. Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is: A. negative and therefore these goods are substitutes. 10 B. negative and therefore these goods are complements. C. positive and therefore these goods are substitutes. D. positive and therefore these goods are complements. 2. To maximize utility a consumer should allocate money income so...
Explain why total utility is maximized when the marginal utility per dollar from a good is...
Explain why total utility is maximized when the marginal utility per dollar from a good is equal across goods as
please provide detailed step by step solution Microeconomics Question in Microeconomics 19) The term Utility in...
please provide detailed step by step solution
Microeconomics
Question in Microeconomics
19) The term Utility in economics refers to A) government provided goods like electricity B) ease of use C he want satisfying power experienced from a good, service or human he change in benefit from producing one additional unit of information limiting a person's ability to purchase a good or service is determined by: 20) 20) The objective information limi A) their preferences the prices they pay for the...
7. The diamond-water paradox is easily resolved once one recognizes that the price of a product...
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...
1) How much of good A and B should the consumer buy to maximize utility? 2) Suppose the consumer's income increased fro...
1) How much of good A and B should the consumer buy to
maximize utility?
2) Suppose the consumer's income increased from $11 to $14,
what would be the utility-maximizing combination of goods A and
B?
Answer the next question(s) based on the table below showing the marginal-utility schedules for gouds A and B for a hypothetical consumer. The price of good A is $1 and the price of good B is $2. The income of the consumer is $1...
Can you answer these questions? 11. Suppose that MUr/Pr exceeds MUyl/Py. To maximize utility the consumer who is spending all her money income should buy A. less of X only if its price ris...
Can you answer these questions?
11. Suppose that MUr/Pr exceeds MUyl/Py. To maximize utility the consumer who is spending all her money income should buy A. less of X only if its price rises. B. more of Y only if its price rises. C. more of Y and less of X. D. more of X and less of Y 12. In purchasing products A and B, a consumer is in equilibrium when: 13. The diamond-water paradox atises because: A. essential...
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...
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
A consumer who has a limited budget will maximize utility or satisfaction when the 1 Multiple Choice 0 ratlos of the marginal utility of each product purchased divided by its price are equal. 0 total utility derived from each product purchased is the same. 0 marginal utility of each product purchased is the same. 0 price of each product purchased is the same.
B 1. Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is: A. negative and therefore these goods are substitutes. 10 B. negative and therefore these goods are complements. C. positive and therefore these goods are substitutes. D. positive and therefore these goods are complements. 2. To maximize utility a consumer should allocate money income so...
Explain why total utility is maximized when the marginal utility per dollar from a good is equal across goods as
please provide detailed step by step solution
Microeconomics
Question in Microeconomics
19) The term Utility in economics refers to A) government provided goods like electricity B) ease of use C he want satisfying power experienced from a good, service or human he change in benefit from producing one additional unit of information limiting a person's ability to purchase a good or service is determined by: 20) 20) The objective information limi A) their preferences the prices they pay for the...
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...
1) How much of good A and B should the consumer buy to
maximize utility?
2) Suppose the consumer's income increased from $11 to $14,
what would be the utility-maximizing combination of goods A and
B?
Answer the next question(s) based on the table below showing the marginal-utility schedules for gouds A and B for a hypothetical consumer. The price of good A is $1 and the price of good B is $2. The income of the consumer is $1...
Can you answer these questions?
11. Suppose that MUr/Pr exceeds MUyl/Py. To maximize utility the consumer who is spending all her money income should buy A. less of X only if its price rises. B. more of Y only if its price rises. C. more of Y and less of X. D. more of X and less of Y 12. In purchasing products A and B, a consumer is in equilibrium when: 13. The diamond-water paradox atises because: A. essential...
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