A Consumer's Utility Is Maximized When the Marginal Utilities Derived

question 36

Multiple Choice

A consumer's utility is maximized when the marginal utilities derived from additional units of goods _____

• A)are less than their market prices.
• B)are equal to the total utilities derived from consumption.
• C)are maximized.
• D)are equal to the opportunity costs of producing additional units of goods.
• E)are exactly proportional to their market prices.

---

Definitions:

Standard error of the mean

The standard deviation of the sampling distribution of the mean, indicating the variability of sample means around the population mean.

Average hourly income

The mean amount of money earned by an individual or group per hour of work.

Standard deviation

A measure of the dispersion or variability of a set of numerical data, indicating how much the individual data points deviate from the mean (average) of the data set.

Degrees of freedom

The count of independent variables or measurements that can change in an examination while still adhering to all limitations.