The Below Table Shows the Average Utility (In Utils) Obtained

question 84

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-As long as the marginal utilities per dollar obtained from the last unit of all products consumed are the same, _____.

• A)the consumer is in equilibrium and will not reallocate income
• B)the consumer is not in equilibrium and will reallocate income
• C)the consumer is most likely operating a budget deficit
• D)the consumer is not maximizing utility
• E)the government will recognize this as an intolerable disequilibrium and will most likely intervene by imposing a tax and reallocate the consumer's income

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Definitions:

All-benefits Approach

A marketing strategy that emphasizes all the benefits of a product or service to appeal to a wide range of consumers.

Points-of-difference

Unique attributes or features that set a product, service, or brand apart from its competitors in the eyes of the target market.

CVP

Stands for Cost-Volume-Profit analysis, a financial tool used to determine how changes in costs and volume affect a company's operating income and net income.

Diversified Market

A market characterized by a variety of products, services, and players, aiming to reduce risks and cater to different customer segments.