At the Utility Maximizing Equilibrium for Two Goods, X and Y

question 326

Multiple Choice

At the utility maximizing equilibrium for two goods, X and Y, which of the following must be TRUE?

• A) The marginal utility per dollar spent on X will exceed the marginal utility per dollar spent on Y.
• B) The total expenditure will be the same for each good.
• C) The marginal utility per dollar from X equals the marginal utility per dollar from Y.
• D) The marginal utility will be the same for each good.

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Definitions:

Felony

A serious criminal offense, typically punishable by imprisonment for more than one year or by death.

Capital Offense

A crime punishable by death or life imprisonment, typically reserved for the most serious offences like murder or treason.

Maximum Penalty

The most severe punishment that can be imposed for a particular offence by a court of law.

Life Imprisonment

A sentence of imprisonment for a crime where the convicted person is to remain in prison for the rest of their life.