If All Consumers in an Economy Have Maximized Their Utility,and

question 54

Multiple Choice

If all consumers in an economy have maximized their utility,and they face a given set of market prices,then each consumer will have identical

• A)total utilities for each good.
• B)marginal utilities for each good.
• C)marginal utilities per unit of each good.
• D)ratios of marginal utility to price for each good.
• E)consumption of each good.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.

Sensory Neurons

Nerve cells that transmit sensory information (sight, sound, feeling, etc.) from the body to the central nervous system.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting information throughout the body.

Sunburn

Skin damage caused by excessive exposure to ultraviolet radiation from the sun, leading to redness, pain, and sometimes blistering.