The Bundle of Goods That Maximizes a Consumer's Utility, Subject

question 50

Multiple Choice

The bundle of goods that maximizes a consumer's utility, subject to a budget constraint, is:

• A) diminishing returns.
• B) total utility.
• C) marginal utility.
• D) optimal consumption.

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Definitions:

Variable Cost

Expenses that change in proportion to the production or sales figures, like labor and materials.

Operating Income

Operating income refers to an organization's earnings before interest and taxes (EBIT), derived from its primary business activities excluding any earnings from investments and other non-operational activities.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the return divided by the cost of the investment.

Percentage

A ratio expressed as a fraction of 100.