Assume That a Person Is Consuming the Utility-Maximizing Quantities of Pork

question 164

Multiple Choice

Assume that a person is consuming the utility-maximizing quantities of pork and chicken.We can conclude that:

• A) the price of pork equals the price of chicken.
• B) the marginal utility of pork equals the marginal utility of chicken.
• C) the ratio of the marginal utility to price is the same for pork and for chicken.
• D) both A and B are true.

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Definitions:

Corporate Profits

The earnings generated by companies after covering their operational costs, taxes, and expenditures.

Proprietors' Income

The income earned by owners of unincorporated businesses, reflecting their production and sales efforts.

Rent

A periodic payment made by a tenant to a landlord in exchange for the use of land, a building, or another property.

Landlords

Individuals or entities that own real estate properties and rent them out to tenants, earning rental income in return.