Utility Is Maximized When

question 57

Multiple Choice

Utility is maximized when:

• A) the marginal utility of every good consumed times its price is everywhere equal.
• B) total outlays equal a varying budget and when the ratios of marginal utilities to prices are equal for all goods and services.
• C) total outlays equal a given budget and the ratios of marginal utilities to prices are equal for all goods and services.
• D) A and C occur.

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Definitions:

Economically Depleted

A situation where a resource becomes scarce or costly to extract or harvest, making it no longer viable or profitable.

Common-Property Approach

A management principle treating resources as collective assets to be shared and used by a community or society rather than privately owned.

Develop Substitutes

Involves creating alternative solutions or products to replace existing ones, enhancing sustainability or addressing scarcity.

Environmental Wisdom

A perspective acknowledging the importance of maintaining a balance between human needs and preserving the natural systems that sustain life.