The Consumer Optimum Is Defined as

question 87

Multiple Choice

The consumer optimum is defined as

• A) the set of goods and services that maximizes marginal utility for each good.
• B) the set of goods and services such that the marginal utility of each good equals zero.
• C) the set of goods and services that maximizes the marginal utility of each good consumed.
• D) the set of goods and services, subject to the limited income of the consumer, that maximizes the total utility of the consumer.

Comprehend sensitivity, scenario, and simulation analyses as tools for assessing project risks.

Identify various methods for incorporating risk into capital budgeting, including Monte Carlo simulation.

Understand the implications of project risk on a firm's financial health and risk profile.

Recognize the value and types of real options in capital budgeting.