A Person Maximizes Utility When He Equalizes the ________ Across

question 11

Multiple Choice

A person maximizes utility when he equalizes the ________ across products.

• A) total utility
• B) total utility per dollar spent
• C) marginal utility
• D) marginal utility per dollar spent

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Definitions:

Weber's Law

A principle stating that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.

Stimuli

External agents, objects, or events that invoke reactions or responses from organisms, including physical, chemical, and biological factors.

Sensory Adaptation

A neurological phenomenon by which individuals become less sensitive to unchanging environmental stimuli over time.

Neural Impulses

Electrical signals that travel along neurons, facilitating communication within the brain and between the brain and the body.