For a Consumer to Maximize Utility, He Will Choose the

question 74

Multiple Choice

For a consumer to maximize utility, he will choose the

• A)point where the slope of the budget line equals the slope of the indifference curve.
• B)any point where the budget line and indifference curve intersect.
• C)point where he gets the most of the good he prefers most.
• D)point where the marginal rate of substitution is greatest.
• E)the point where marginal utility is zero for both goods

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Definitions:

Standard Cost

The predetermined cost of manufacturing a single unit or a number of units during a specific period under normal conditions.

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used and the expected quantity of raw materials based on the standard cost, which indicates efficiency in using materials.

Standard Cost System

An accounting system that uses standard costs for product costs, serving as a tool for planning, controlling, and decision making.

Actual Results

Actual results refer to the final outcomes or data obtained after completing a process or experiment, measured against predetermined objectives or expectations.