The State of Consumer Optimum Is Reached When the Consumer's

question 183

Multiple Choice

The state of consumer optimum is reached when the consumer's

• A) total utility/marginal utility ratio for all items is equal.
• B) total utility/price ratio for all items is equal.
• C) marginal utility for a product is zero.
• D) marginal utility/price ratios for all items are equal.

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Definitions:

Semiannually

Occurring twice a year, typically used in the context of payments, interest calculations, or periodic events.

Average Inventory

The mean value of inventory held by a business over a specific period of time, used to evaluate the investment in inventory against sales performance.

Ending Inventory

The complete valuation of items that are up for sale at the end of a financial accounting period.

Beginning Inventory

The value of all the inventory held by a company at the start of an accounting period, before any purchases or sales are made.