For a Consumer to Maximize Utility

question 110

Multiple Choice

For a consumer to maximize utility,

• A)marginal utility should equal marginal benefit.
• B)price should equal marginal benefit.
• C)marginal benefit should equal total utility.
• D)price should equal marginal utility.
• E)price should equal marginal cost.

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Definitions:

Iconic Memory

A type of visual sensory memory that holds a brief photographic image of a scene that has just been observed.

Recency Effect

The improvement in retention of information learned at the end of a task.

Memory

The cognitive process involving the encoding, storing, and retrieving of information.

Forgetting

The processes that prevent information from being retrieved from a memory store.