If a Consumer Must Spend Her Entire Income on Some

question 67

Multiple Choice

If a consumer must spend her entire income on some combination of two commodities and chooses to spend it all on just one of the commodities then:

• A) the other commodity is an economic bad.
• B) the other commodity must have zero marginal utility.
• C) the other commodity generates less utility per dollar spent on the good.
• D) the two commodities must be perfect substitutes.

Understand the implications of changes in industry size on resource prices and production costs.

Relate concepts of economic profits, losses, and break-even conditions to firm behavior and market adjustments.

Understand the dynamics of market demand and supply in determining product prices and total output.

Comprehend the concept of allocative and productive efficiency in market structures.

---

Definitions:

Office Furniture

Items and sets of furniture designed specifically for office environments, including desks, chairs, and storage units, to support work-related activities.

Legal Protections

Measures or laws designed to safeguard an individual's rights, property, or wellbeing against infringement or harm.

Shareholders

Individuals or entities that own shares in a corporation, making them partial owners of the company.

Company's Growth

The increase in size, market share, profitability, or value of a company over time, often achieved through expanding operations, entering new markets, or enhancing product lines.