In Choosing Between Two Products, a Rational Consumer Will Choose

question 39

Multiple Choice

In choosing between two products, a rational consumer will choose the product that gives her the:

• A) greatest total utility regardless of cost.
• B) least marginal utility per dollar.
• C) highest cost per additional unit of utility.
• D) lowest cost per additional unit of utility.

---

Definitions:

Special

Distinguished by a unique or particular quality, purpose, or condition from what is ordinary or common.

Overdue

A status indicating that a payment or obligation was not fulfilled or completed by its due date.

Holder In Due Course

A party possessing a negotiable instrument, such as a check, who took the instrument in good faith, for value, and without notice of any defect or claim against it.

Cashed Check

A check that has been presented to a bank or financial institution and exchanged for the equivalent amount in cash.