If the Marginal Utility of Each Good a Consumer Buys

question 115

Multiple Choice

If the marginal utility of each good a consumer buys does not diminish but remains constant, we should see consumers

• A)buying no goods at all
• B)spending all of their income on the good with the highest marginal utility
• C)buying one unit of each good
• D)buying only the least expensive good
• E)leaving the store in total confusion

---

Definitions:

Selling Price

The amount charged to customers for goods or services, determining the revenue generated from sales.

Sales Volume

The number of units of a product sold in a particular period, indicative of the level of demand and operational success.

Net Operating Income

A company's income after operating expenses are subtracted but before deducting taxes and interest charges.

Selling Price

The sum charged to consumers for a product or service.