The Consumer Maximizes His Total Utility (Measured in Money Terms)

question 140

Multiple Choice

The consumer maximizes his total utility (measured in money terms) when, at his chosen quantity of every good he buys, marginal utility

• A)equals zero.
• B)divided by price equals zero.
• C)equals price.
• D)equals total utility.

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Definitions:

Completed Units

The term refers to items that have been fully manufactured, processed, or finished and are ready for sale.

Equivalent Units

A calculation used in process costing to convert partially completed units into a number of fully completed units.

First-In, First-Out

An inventory valuation method where the first items placed in inventory are the first ones to be used or sold.

Conversion Equivalent Units

A metric used in cost accounting to quantify the amount of work done on partially finished goods, measured in full unit equivalents.