Which of the Following Statements Is True

question 78

Multiple Choice

Which of the following statements is true?

• A)If a consumer is in equilibrium, it does not necessarily follow that he or she is also achieving the greatest total utility.
• B)If a consumer is in equilibrium, it necessarily follows that he or she is also achieving the greatest total utility.
• C)If a consumer is attaining the greatest marginal utility, then it necessarily follows that he or she is also achieving the greatest total utility.
• D)If a consumer is attaining the greatest total utility, then it necessarily follows that he or she is also achieving the greatest marginal utility.

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Definitions:

Statement of Stockholders' Equity

A financial statement showing the changes in the equity section of the balance sheet during a certain period, including shares issued, dividends paid, and earnings.

Income Statement

A financial document detailing a company's revenues, expenses, and net income over a specific period, illustrating its profitability.

Liabilities

Liabilities are the financial obligations of a company, including debts and other amounts owed to creditors, which must be settled over time.

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of a corporation after deducting liabilities, essentially what is owned by the company's shareholders.