Utility Maximization for All Goods Requires That

question 149

Multiple Choice

Utility maximization for all goods requires that:

• A) the marginal utilities of all goods consumed divided by their prices are equal to the budget constraint.
• B) the marginal utilities of all goods exceed the total utility of all goods.
• C) the marginal utilities of all goods divided by their respective prices are equal.
• D) all of the above be true.

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Definitions:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Mathematical Expression

A combination of numbers, operators, and sometimes variables that represents a mathematical relationship or value.

Exponentiation

A process of multiplying a number by itself a specified number of times, indicated by the exponent.

Percentage Difference

A measure of the relative difference between two values, expressed as a percentage.