A Consumer Maximizes His or Her Utility When Expenditures Are

question 117

Multiple Choice

A consumer maximizes his or her utility when expenditures are allocated such that

• A)the total utility from each good is equal.
• B)the total number of dollars spent on each good is equal.
• C)the utility received from the last unit of each good is equal.
• D)the utility received per dollar spent on the last unit of each good is equal.
• E)the marginal utility is zero for each good consumed utility.

---

Definitions:

Net Cash Flows

The difference between a company's cash inflows and cash outflows during a specific period.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the expense is evenly distributed over its useful life.

Accounting Rate of Return

A metric used to measure the profitability of investments, calculated by dividing the average net income by the initial investment cost.