In Order for a Consumer to Choose Between Two Different

question 128

Multiple Choice

In order for a consumer to choose between two different goods, he has to take into consideration the

• A) marginal utility of production.
• B) marginal utility divided by the price.
• C) marginal utility plus the price.
• D) total utility divided by price.

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Definitions:

Payoff

The return or reward received from an investment or decision.

Proportion

An element or piece assessed regarding its comparison with the total sum.

Equilibrium

A state in which supply and demand are balanced, commonly used in economics to describe the condition where market supply equals market demand.

Payoff

The return or reward received from an investment or action, often analyzed in game theory and economics.