Assume That the Marginal Utility from Good a Is 10

question 459

Multiple Choice

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

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

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Definitions:

Citric Acid Cycle

A key metabolic pathway that takes place in the mitochondria of cells, where acetyl CoA is oxidized to produce energy in the form of ATP.

Electron Transfer Phosphorylation

A process where energy from electron transfer is used to add a phosphate to ADP, forming ATP, important in cellular energy production.

Anaerobic Respiration

A form of respiration that occurs without oxygen, producing energy by breaking down glucose through processes like fermentation.