Maximum Utility Is Achieved When

question 132

Multiple Choice

Maximum utility is achieved when

• A)Total revenue is the greatest.
• B)The price elasticity of demand is 1.0.
• C)Marginal utility is zero.
• D)Total utility equals marginal utility.

---

Definitions:

Fairness

The quality of making judgments that are free from discrimination, dishonesty, or injustice.

Ultimatum Game

A game in economic experiments where one player proposes how to divide a sum of money with another, who can accept or decline the offer, with both getting nothing if declined.

Dictator Game

An experimental economics game that measures how fairly individuals allocate resources when they have complete control over distribution.

Market Transactions

The act of buying or selling goods and services in a market, involving a transfer of money and ownership.