Total Utility Is Maximized in the Consumption of Two Goods

question 31

Multiple Choice

Total utility is maximized in the consumption of two goods by

• A)equating the marginal utility for each good consumed.
• B)equating the marginal utility per dollar for each good consumed.
• C)equating the total utility of each good divided by its price.
• D)maximizing expenditure on each good.

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Definitions:

Episodic Memory

A type of long-term memory that involves recollection of specific events, situations, and experiences.

Semantic Memory

A type of long-term memory involving the recall of general facts and knowledge about the world.

Spatial Orientation

An individual's ability to recognize themselves or objects in relation to environment, direction, and position in space.

Numeric Ability

The capacity to understand, manipulate, and interpret numbers and mathematical concepts.