Total Utility Is Maximized in the Consumption of Two Goods

question 75

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 spent 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:

Stroma

The supportive tissue framework of an organ, gland, or other structure, often consisting of connective tissues and blood vessels.

Thylakoid Compartment

A membrane-bound structure within chloroplasts of plant cells and cyanobacteria, involved in the light-dependent reactions of photosynthesis.

Organic Material

Matter composed of organic compounds that has come from the remains of organisms such as plants and animals and their waste products in the environment.

Environment

The surrounding conditions, influences, or forces which affect the survival, development, and evolution of organisms or communities.