Utility Is Maximized in the Consumption of Two Goods by Equating

question 34

Multiple Choice

Utility is maximized in the consumption of two goods by equating the:

• A) marginal utility of one good to the price of the other.
• B) ratios of marginal utility to price for both goods.
• C) ratios of total utility to price of both goods.
• D) marginal utilities of both goods.

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Definitions:

Agonist

A chemical or drug that binds to receptors in the brain and causes a response, often mimicking the action of naturally occurring substances.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Dopamine Pathways

Neural pathways in the brain that transmit dopamine, a neurotransmitter involved in reward, motivation, pleasure, and the regulation of movement and emotions.

Glutamate Pathways

Neural pathways that use glutamate as a neurotransmitter, playing a critical role in brain functions including learning and memory.