Economists Generally Assume That a Consumer

question 63

Multiple Choice

Economists generally assume that a consumer

• A)consumes until marginal utility is equal to zero.
• B)consumes until total utility is equal to zero.
• C)maximizes her marginal utility given her budget constraint.
• D)maximizes her total utility given her budget constraint.
• E)minimizes her spending given her budget constraint.

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Definitions:

Time And Material Pricing

A pricing method that charges the customer based on the actual time spent and materials used on a project.

Labour Charge

The amount paid for the work performed by employees or workers, typically based on hours worked or tasks completed.

Overhead Costs

Expenses related to the day-to-day running of a business that cannot be directly linked to a specific product or service.

Time Charge

A billing method where a service provider charges a client based on the amount of time spent on a particular task or project.