Figure 3-1 Shows the Preferences of a Consumer Toward Reading

question 4

Multiple Choice

Figure 3-1 shows the preferences of a consumer toward reading books and watching movies.Refer to Figure 3-1.ref SHAPE \* MERGEFORMAT Which of the following is the point at which the consumer maximizes his utility?

• A)A
• B)C
• C)D

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Definitions:

External Cost

Costs of an economic activity that are not borne by the parties involved but are instead imposed on others or society at large.

Private Value

The value of a good or service to an individual or firm for personal use, as opposed to its value to society or the economy at large.

Socially Optimal

A situation or outcome that is best from the society's point of view, where social welfare, including benefits and costs, is maximized.

Economic Well-being

A broad measure of the prosperity and quality of life of individuals or societies, encompassing material, social, and environmental dimensions.