An Optimizing Consumer Will Select the Consumption Bundle in Which

question 321

Multiple Choice

An optimizing consumer will select the consumption bundle in which the marginal rate of substitution

• A)is equal to the price of the least-expensive good.
• B)exceeds the marginal utility of each good by the greatest amount.
• C)is less than the slope of the budget constraint.
• D)None of the above is correct.

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net assets, representing the company's reputation, customer relationships, and other unquantifiable factors.

Internally Generated

Assets or resources that are created within an organization, without acquiring them from external sources.

Gain On Sale

The profit received from selling a capital asset for more than its purchase price.

Plant Asset

A long-term asset used in the production of goods or services, not expected to be consumed or converted into cash within a year.