A Consumer Maximizes Utility When the Marginal Utilities of All

question 103

Multiple Choice

A consumer maximizes utility when the marginal utilities of all goods

• A)having positive money prices that are equal to zero
• B)are equal
• C)are maximized
• D)are equal to the opportunity costs for all goods that are considered necessities
• E)are exactly proportional to their market prices

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Definitions:

Linear Equation

A linear equation is an algebraic equation in which each term is either a constant or the product of a constant and a single variable, and the graph forms a straight line.

Solve

The process of finding the values that satisfy an equation or a system of equations.

Proportion

A statement that two ratios or fractions are equal.

X

Often used to represent an unknown value in algebraic expressions and equations.