A Consumer's Optimum Is Found When

question 218

Multiple Choice

A consumer's optimum is found when

• A) the marginal utility of the last dollar spent equals zero for each good.
• B) the marginal utility of each good is increasing and the total income is spent.
• C) the total utility of each good is the same and the total income is spent.
• D) the marginal utility of the last dollar spent on each good is the same and all income is spent.

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Definitions:

Acid-Test Ratio

A stringent measure of liquidity that assesses a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Year 2

This term does not have a specific definition without context but generally refers to the second year of a given timeframe, study, or financial period.

Average Collection Period

The amount of time it typically takes for a business to receive payments owed by its customers, indicating the efficiency of a company's credit and collection policies.

Year 2

Typically refers to the second year of a specified period, often used in financial analysis to compare annual performance or growth.