Assume That You Can Afford to Buy as Many Candy

question 127

Multiple Choice

Assume that you can afford to buy as many candy bars and ice cream cones as you want. You would continue to consume both candy bars and ice cream until the:

• A) marginal utility of each decreases.
• B) marginal utility of each becomes negative.
• C) total utility of each becomes negative.
• D) marginal utility of candy bars and ice cream bars is equal.
• E) total utility of candy bars and ice cream bars is equal.

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Definitions:

Pros

The advantages or positive aspects of a situation or decision.

Cons

The arguments, reasons, or factors opposing an idea, decision, or action; the drawbacks or disadvantages.

Gains

Benefits or profits accrued from investments, efforts, or other activities.

Losses

The state of being deprived of or of being without something that one has had or the detrimental impact resulting from such a situation.