If a Consumer's Marginal Utility Was 10 Utils Per Unit

question 84

Multiple Choice

If a consumer's marginal utility was 10 utils per unit of meat and 5 utils per unit of potatoes:

• A)the consumer should purchase less potatoes and more meat to maximize his satisfaction.
• B)the consumer would be in equilibrium if the per-unit price of meat was twice the price of potatoes.
• C)the consumer would be in equilibrium if the price per unit of meat was half the price of potatoes.
• D)the consumer's total utility could be increased by consuming more potatoes and less meat until the marginal utilities of the two goods were equal.

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Definitions:

Capital Resources

Assets such as machinery, tools, and buildings that are used in the production of other goods and services.

Resource Availability

The extent to which inputs required for production, such as raw materials, labor, and capital, are readily obtainable in the economy or market.

Technological Capabilities

The skills, knowledge, tools, and processes available to an individual, organization, or society that enable technological developments or innovations.