The Marginal Utility Per Dollar from Pizza Is Greater Than

question 39

Multiple Choice

The marginal utility per dollar from pizza is greater than the marginal utility per dollar from pop.To maximize utility,a consumer buys

• A)less pizza and more pop.
• B)equal quantities of pizza and pop.
• C)more pizza and less pop.
• D)more pizza and more pop.
• E)less pizza and less pop.

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Definitions:

Profit-Maximizing Firms

Companies that operate with the goal of making the highest possible profit given their resources and market conditions.

Market Supply

The total amount of a specific good or service that is available for purchase in a given market at various prices, over a specified period.

Market Demand

The overall amount of a product or service that every consumer in a market is ready and capable of buying at different price levels.

Competitive Market

A commercial system where numerous buyers and sellers exist, preventing any single party from setting the price.