Which of the Following Statements Is True When the Consumer

question 18

Multiple Choice

Which of the following statements is true when the consumer is in utility-maximizing equilibrium?

• A)The number of units of each good purchased is equal.
• B)The prices of the goods in question must be equal.
• C)The total benefits the consumer receives from every good consumed must be the same for all goods.
• D)The rate at which the consumer is willing to trade one good for another is equal to the ratio of their market prices.

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Definitions:

Rolls Forward

A term used in accounting to describe the process of moving figures from one period to the next, often related to budgets or forecasts.

Budgets

Financial plans that outline expected revenues and expenditures for a specific period, guiding spending and investment decisions.

Bottlenecks

Restrictions in a production process that limit throughput, often leading to delays and reduced production efficiency.

Production Budget

A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs.