Utility Is Maximized in the Consumption of Two Goods by Equating

question 34

Multiple Choice

Utility is maximized in the consumption of two goods by equating the:

• A) marginal utility of one good to the price of the other.
• B) ratios of marginal utility to price for both goods.
• C) ratios of total utility to price of both goods.
• D) marginal utilities of both goods.

---

Definitions:

Joints

Natural fractures or separations in rock that occur without significant displacement of the sides.

Weathering

The breakdown of rocks, soils, and minerals as well as artificial materials through contact with the Earth's atmosphere, waters, and biological organisms.

Fluid Pressure

The pressure exerted by a fluid at any given point within the fluid, dependent on the fluid's density and depth.

Differential Stress

The difference in magnitude of stress applied in varying directions within geological formations, influencing rock deformation.