A Consumer Has Maximized Her Total Utility (As Measured in Money)

question 126

Multiple Choice

A consumer has maximized her total utility (as measured in money) when, at the quantity of each good chosen

• A)marginal utility is negative.
• B)marginal utility divided by price is equal to 1.
• C)marginal utility is greater than price.
• D)marginal utility is equal to total utility.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction.

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