When the Marginal Utility Per Dollar of Good X Exceeds

question 25

Multiple Choice

When the marginal utility per dollar of good x exceeds the marginal utility per dollar of good y,

• A) the consumer should consume more of good x.
• B) the consumer is consuming too much of good x.
• C) good y must have a negative marginal utility.
• D) the consumer is in an optimal situation if the price of good x exceeds the price of good y.

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