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

question 135

Multiple Choice

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

-Consumers should allocate their income so that the marginal utility associated with the:

• A)first dollar spent is equal for all goods.
• B)last dollar spent is equal for all goods.
• C)last dollar spent is lower for high-priced items than for low-priced items.
• D)first dollar spent is greater for high-priced items than for low-priced items.
• E)first dollar spent is less for high-priced items than for low-priced items.

---

Definitions:

Purchase Price

The amount of money that is paid to buy a good, service, or asset.

Rental Price

The cost associated with leasing or renting a property, such as a house, apartment, or commercial space.

Capital Stock

The total amount of physical goods or assets that a company or country uses in the production of goods and services.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, while holding all other inputs constant.