Chuck and Barry Have Identical Total Utility Schedules but Chuck

question 9

Multiple Choice

Chuck and Barry have identical total utility schedules but Chuck has a much higher income.If each is maximizing his total utility,then

• A)they will have equal total utilities.
• B)Chuck will have lower total utility than Barry.
• C)Chuck will have lower marginal utility than Barry for each normal good consumed.
• D)Chuck will have higher marginal utility than Barry for each normal good consumed.
• E)they will have equal marginal utilities for each normal good consumed.

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Definitions:

Uncertain environments

describe situations or contexts in which there is a lack of clear information or predictability, making it difficult to make decisions or plan effectively.

Behavioral responses

The observable reactions or actions of an individual or group in response to external stimuli.

Existing patterns

Pre-established modes or paths of action that are typically followed within an organization or society.

Bounded rationality

A concept that human decision-making is limited by available information, cognitive limitations, and time constraints, leading to satisficing rather than optimal decisions.