For a Consumer, the Marginal Utility of Good a Is

question 149

Essay

For a consumer, the marginal utility of good A is 25 and its price is $5. The marginal utility of good B is 60 and its price is $12. The consumer has allocated his entire budget. Is this consumer maximizing his total utility? Explain your answer.

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Definitions:

Self-Conscious

An acute awareness of oneself, often leading to feelings of vulnerability or excessive concern about how one is perceived by others.

Sexually Daring

Exhibiting boldness or willingness to take risks in exploring sexual desires and engaging in sexual activities.

Addictive Drugs

Substances that cause dependency and compulsive consumption, often leading to detrimental health effects.

Morphine

A potent opiate analgesic drug derived from the opium poppy used to relieve severe pain.