A Consumer Is Maximizing Utility When

question 382

Multiple Choice

A consumer is maximizing utility when

• A) the slope of the budget constraint has reached -1.
• B) diminishing marginal utility has set in.
• C) the slope of the budget constraint equals the marginal rate of substitution.
• D) the consumer has spent all of his income.

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Definitions:

Governmental Influence

The extent to which government actions or policies affect the decisions and actions of individuals or organizations.

Compete

To strive against others for the purpose of achieving something, such as a prize or a higher level of achievement, often under conditions of equal footing and rules.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Protect

To defend or safeguard from harm, danger, or loss, often pertaining to individuals, groups, or entities.