For a Consumer, the Marginal Utility of Good a Is

question 149

Essay

For a consumer, the marginal utility of good A is 25 and its price is $5. The marginal utility of good B is 60 and its price is $12. The consumer has allocated his entire budget. Is this consumer maximizing his total utility? Explain your answer.

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Definitions:

Large Corporations

Businesses that operate on a vast scale, often with a global presence, having significant market influence and a complex organizational structure.

Small Corporations

Typically refers to privately owned and operated companies with a small number of shareholders and limited financial resources.

Government

The governing body of a nation, state, or community, responsible for the direction and administration of public policies, the economy, and public services.

New Businesses

Entrepreneurial ventures that involve the inception and operation of new enterprise initiatives, targeting unique market opportunities.