There Are Two Conditions Necessary for a Consumer to Maximise

question 217

Multiple Choice

There are two conditions necessary for a consumer to maximise her utility.One is that the marginal utilities per dollar spent on each good and service consumed are equal.What is the other condition?

• A)Total spending on all goods and services must equal the amount available to be spent.
• B)The consumer must be satisfied with the choices she makes.
• C)The total spent on each good and service is the same.
• D)The prices of each good and service consumed must not be too high.

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Definitions:

Assets

Resources owned or controlled by a business, entity, or individual, which are expected to produce economic value or future benefits.

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company at using its assets to generate revenue.

Sales Revenue

The income received from selling goods or services over a period of time.