If Total Utility Can Be Increased by Purchasing a Little

question 153

Multiple Choice

If total utility can be increased by purchasing a little more milk and a little less ice cream,the _____

• A)marginal utility of milk is greater than that of ice cream.
• B)marginal utility of ice cream is greater than that of milk.
• C)ratio of the marginal utility of milk to its price is greater than that of ice cream.
• D)ratio of the marginal utility of milk to its price is lesser than that of ice cream.
• E)marginal utility of ice cream is negative.

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Definitions:

Product Groupings

The organization or categorization of products into groups or categories based on similarities, purpose, or type, often seen in retail or online stores.

Niches

Specific, targeted segments of a market where businesses can focus their products or services to meet specific consumer needs.

Consumer Income

The total earnings of a consumer, influencing their purchasing power and consumption habits.

High-Quality Products

Goods that exceed the standard expectations in performance, durability, and reliability.