Using the Utility Approach,the Consumer Is in Equilibrium When

question 96

Multiple Choice

Using the utility approach,the consumer is in equilibrium when:

• A)the marginal utility associated with consuming the last unit is zero.
• B)total utility from each good is at a maximum.
• C)the marginal utilities associated with consuming an extra unit of each good are equal.
• D)the marginal utility per dollar's worth of each good is equal.

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Definitions:

Stars

Objects in space consisting of hot plasma emitting light, or in a business context, products or business units with high market share in fast-growing industries.

Dogs

In the context of the BCG Matrix, business units or products that have low market share in a mature, slowly growing industry, suggesting they may generate just enough cash to maintain themselves.

Market Penetration

The action or strategy of increasing the market share of an existing product, or promoting a new product, through aggressive marketing tactics.

Market Development

A growth strategy where a company aims to increase sales by promoting its existing products in new markets.