The Below Table Shows the Average Utility (In Utils) Obtained

question 25

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Because incomes are limited, purchasing one thing means not being able to purchase other things. This indicates that:

• A)marginal utility diminishes.
• B)marginal utility is constant.
• C)people will allocate their income among goods so as to achieve the most satisfaction.
• D)people will allocate their income among goods so that the marginal utilities of all goods is equal.
• E)people will allocate their income among goods so that the marginal utilities of all goods is zero.

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