A Consumer Maximizes Total Utility from a Given Amount of Income

question 13

Multiple Choice

A consumer maximizes total utility from a given amount of income when the

• A)Marginal utility obtained from the last dollar spent on each good is the same.
• B)Marginal utility of the last unit of each good is the same.
• C)Total utility obtained from each product is the same.

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Definitions:

Functional Similarities

The aspects in which different things show a likeness in purpose, role, or use.

Psychoanalysis

A therapeutic approach and theory of psychopathology, developed by Sigmund Freud, focusing on unconscious processes and resolving internal conflicts.

Childhood Feelings

Emotions or sentiments experienced during the early years of life, which can significantly influence personality and psychological development.

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.