When Ramona Is in Consumer Equilibrium

question 54

Multiple Choice

When Ramona is in consumer equilibrium

• A) her total utilities of all goods are equal.
• B) she is maximizing her utility, given her income and the prices of goods and services.
• C) her total utility per dollar spent is equal for all goods.
• D) any change in prices would make her worse off.

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Definitions:

Firm's Total Profit

The total income of a firm after subtracting all costs necessary to generate its revenue.

Firm's Total Profit

The total income of a firm after subtracting all costs from its total revenues.

Profit Maximizing

The process of adjusting production and sale levels to achieve the highest possible profit based on existing market conditions.

Level of Output

The quantity of goods or services produced by a company, industry, or economy within a given period.