Total Utility Is Maximised in the Consumption of Two Goods

question 124

Multiple Choice

Total utility is maximised in the consumption of two goods by

• A) equating the marginal utility for each good consumed.
• B) equating the marginal utility per dollar for each good consumed.
• C) equating the total utility of each good divided by its price.
• D) maximising expenditure on each good.

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Definitions:

Chunked

The process of organizing or breaking down information into smaller, manageable units or chunks to improve recall and understanding.

Massed

Massed practice refers to the learning approach where information or skills are studied intensively over short periods of time, without breaks.

Recognition

The identification of previously encountered or learned information when presented again.

Relearning

The process of regaining knowledge or skills that were previously learned but forgotten, which often occurs faster than the initial learning.