A Consumer Is Maximizing Her Utility with a Particular Money

question 289

Multiple Choice

A consumer is maximizing her utility with a particular money income when

• A)the total utility derived from each product consumed is the same.
• B)MU a/ Pₐ = MU b/ Pᵦ = MU c/ P_c = . . . = MU n/ Pₙ .
• C)MU a = MU b = MU c = . . . = MU n.
• D)Pₐ = Pᵦ = P_c = . . . = Pₙ .

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Definitions:

Calculating

The action of performing mathematical operations to determine a result.

Significant Correlations

Relationships between variables that are strong enough to unlikely be due to chance, as determined by statistical tests.

Test Statistic

A value calculated from sample data that is used in statistical hypothesis testing to determine whether to reject the null hypothesis.

Correlation Coefficient

A measure indicating the extent to which two variables change together, ranging from -1 to 1.