For the Consumer to Be at an Optimum, It Must $M R T _ { C , c ^ { \prime } } = ( 1 + r )$

question 17

Multiple Choice

For the consumer to be at an optimum, it must be the case that

• A) \(M R T _ { C , c ^ { \prime } } = ( 1 + r )\).
• B) \(M R S _ { C , c ^ { \prime } } = \frac { 1 } { ( 1 + r ) }\).
• C) \(M R S _ { C , c ^ { \prime } } = w e ( 1 + r )\).
• D) \(M R S _ { C , c ^ { \prime } } = ( 1 + r )\).
• E) \(M R T _ { \mathcal { C } , c ^ { \prime } } = \frac { 1 } { ( 1 + r ) }\).

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Definitions:

Book Value per Share

A financial measure that indicates the theoretical value per share of a company if it were to liquidate, calculated by dividing total equity by the number of outstanding shares.

Price-earnings Ratio

A valuation metric for companies, calculated by dividing the current market price of a stock by its earnings per share (EPS).

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, typically expressed as a percentage.

Earnings per Share

A financial ratio that measures the amount of net income earned per share of common stock. It is an indicator of a company's profitability.