In Order to Maximize Utility, a Consumer Should Allocate Money

question 418

Multiple Choice

In order to maximize utility, a consumer should allocate money income so that

• A) the marginal utility of the last unit of each product consumed is greater than the total utility of each product consumed.
• B) the total utility derived from each product consumed is the same.
• C) the marginal utility obtained from the last dollar spent on each product is the same.
• D) the elasticity of demand on all products purchased is the same.

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Definitions:

Statement of Cash Flows

A financial statement that shows the cash inflows and outflows for a company over a specified period, classified into operating, investing, and financing activities.

Financial Position

The status of the assets, liabilities, and equity of an entity at a given point in time, as outlined on the balance sheet.

Financial Position

A snapshot of the assets, liabilities, and equity of a business at a given point in time, illustrating the company's financial health.

Changes in Equity

Adjustments in a company’s equity during a specific period due to factors like earnings, dividends, or changes in share capital.