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:

Income Statement

An Income Statement is a financial document that shows a company's revenue, expenses, and profits or losses over a specific period.

Excess Inventory

A situation where a company holds a larger amount of inventory than it can sell or use within a reasonable period, often leading to increased costs.

Tied-up Funds

Money that is currently invested, in use, or otherwise not readily available for free spending or other investment opportunities.

Lost Sales

Potential sales that were not realized due to stock shortages, inadequate service, or other operational issues.