A Consumer Has Been Buying 3 Magazines and 1 Book

question 249

Multiple Choice

A consumer has been buying 3 magazines and 1 book each month. The price of magazines then decreases, which directly causes the marginal utility per dollar spent on

• A) magazines to increase, thereby inducing the consumer to purchase fewer magazines and more books.
• B) magazines to increase, thereby inducing the consumer to purchase more magazines and fewer books.
• C) books to increase, thereby inducing the consumer to purchase fewer magazines and more books.
• D) books to decrease, thereby inducing the consumer to purchase fewer magazines and more books.

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Definitions:

Training Department

A specialized group within an organization focused on enhancing employee skills, knowledge, and performance.

Polishing Department

A division within a manufacturing process focused on refining, smoothing, or finishing products or components to specified standards.

Theoretical Capacity

The highest level of activity that an entity can achieve under perfect operating conditions, ignoring any limitations such as maintenance or downtime.

Peak Efficiency

The highest level of performance or productivity with the least waste of resources.