For a Consumer to Maximize Utility,in Part the Consumer Must

question 109

Multiple Choice

For a consumer to maximize utility,in part the consumer must

• A) allocate the entire available budget.
• B) make the marginal utility per dollar from each good as much different as possible for all goods.
• C) make the marginal utility per dollar from each good as small as possible for all goods.
• D) spend as little of the budget as possible.
• E) Answers A and B are both correct.

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Definitions:

Quasi-Contract

The doctrine by which courts imply, as a matter of law, a promise to pay the reasonable value of goods or services when the party receiving such goods or services has knowingly done so under circumstances that make it unfair to retain them without paying for them.

Express Promise

is a clear and explicit commitment or assurance given by one party to another, typically in a contractual context.

Unilateral Contract

A contract formed by an offer or a promise on one side for an act to be done on the other, and a doing of the act by the other by way of acceptance of the offer or promise; that is, a contract wherein the only acceptance of the offer that is necessary is the performance of the act.

Enforceable

Capable of being imposed or executed legally or by authority.