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

question 23

Multiple Choice

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

-If MU_x / P_x = MU_Y / P_Y, then _____.

• A)the consumer should purchase the same quantity of X and Y
• B)the consumer should purchase less of X
• C)the consumer is maximizing utility
• D)the consumer should purchase more of Y
• E)the consumer is minimizing utility

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Definitions:

Fixed

Pertains to costs that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold within a specific timeframe, including rent, salaries, and insurance premiums.

Relevant Range

The range of operating activity within which the assumptions about fixed and variable cost behaviors remain valid.

Fluctuate

To change or vary irregularly in number, amount, volume, or intensity.