According to Utility Theory, Consumer Purchase Decisions Are Made Such

question 365

Multiple Choice

According to utility theory, consumer purchase decisions are made such that

• A) the value of the ratio of marginal utility to price for the last units purchased and consumed is equal.
• B) the difference between the value of the marginal utility of the last unit purchased and the price paid is maximized.
• C) the total utility of the last unit purchased is equal to the price of that unit.
• D) the total utility from consuming the good is less than the marginal utility of the last unit consumed.

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Definitions:

Group Decisions

The process by which multiple individuals come together to make a decision, combining their ideas, preferences, and expertise.

National Culture

The set of shared customs, traditions, behaviors, and beliefs characteristic of a particular country or nation.

International Business

Commercial activities that involve the exchange of goods, services, technology, or capital across national borders.