Suppose That a Consumer Is Currently at an Optimum When

question 261

Multiple Choice

Suppose that a consumer is currently at an optimum when consuming goods A and B. Which of the following must be true?

• A) The total utility from A is equal to the total utility from B.
• B) The price of A is equal to the price of B.
• C) The marginal utility of A is equal to the marginal utility of B.
• D) The marginal utility to price ratio of A is equal to the marginal utility to price ratio of B.

---

Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society or organization.

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.

Equality

The state or quality of being equal, especially in status, rights, and opportunities.