If All Consumers in an Economy Have Maximized Their Utility,and

question 54

Multiple Choice

If all consumers in an economy have maximized their utility,and they face a given set of market prices,then each consumer will have identical

• A)total utilities for each good.
• B)marginal utilities for each good.
• C)marginal utilities per unit of each good.
• D)ratios of marginal utility to price for each good.
• E)consumption of each good.

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Definitions:

Average Product

The output per unit of a particular input, calculated by dividing total output by the quantity of inputs.

Labor

Human effort, either physical or mental, used in the production of goods and services.

Average Product

The output per unit of input, calculated by dividing the total output by the number of units of the input.

Lawns Mowed

The activity of cutting the grass of a lawn to maintain its appearance and health.