Assume That the Marginal Utility from Good X Is 10

question 312

Multiple Choice

Assume that the marginal utility from good x is 10 units and that the price of good x is $5 per unit. The marginal utility from good y is 15 units and its unit price is $7. In this situation, a utility-maximizing consumer should

• A) consume more of good x.
• B) consume only good y.
• C) consume more of good y.
• D) consume neither x nor y.

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Definitions:

Zone of Indifference

A concept in organizational behavior referring to the range of directives that employees are willing to accept without resistance.

Zone of Tolerance

The range within which customers are willing to accept variations in service delivery before their satisfaction is affected.

Request

An act of asking formally or politely for something.

Legitimate Power

Power that is based on position and mutual agreement; agent and target agree that the agent has the right to influence the target.