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:

Research Procedures

Specific methods and practices used in conducting scientific or scholarly investigation.

Social Influence

The effect that the words, actions, or presence of other people have on our thoughts, feelings, attitudes, or behaviors.

Interpersonal

Pertaining to relationships or communication between people.

Cultural Context

The pattern of physical cues, environmental stimuli, and implicit understanding that convey meaning between members of the same culture.