Consumer theory predicts that a consumer will purchase the product with the highest marginal utility per dollar.
Answer the following statement true (T) or false (F)
True
The rational consumer will take into account the additional utility a good will provide, along with its price, because the consumer has limited income. This means that the rational consumer will choose the goods with the highest marginal utility per dollar.
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The American Recovery and Reinvestment Act of 2009 called for:
A. a return to the gold standard. B. reductions in government spending and tax increases. C. the purchase of assets and equity from troubled financial institutions. D. increases in government spending and tax cuts.
If international trade is restricted by the government:
a. domestic consumers are benefited. b. domestic producers are adversely affected. c. consumers in the importing country are required to pay higher prices for the goods. d. consumers can access to better quality product at lower prices. e. the resources are allocated to their highest paid uses.
Which of the following has contributed to decreased concentration in U.S. industry since the 1970s?
a. rising interest rates and disinflation b. segmentation and economies of scale c. devaluation and economies of scale d. technological change and market globalization e. marginal cost pricing and product differentiation
Over the past two decades the U.S. balance on current accounts has
a. been in deficit b. generated surpluses c. been very erratic, swinging from deficits to surpluses to deficits d. essentially been in balance e. declined in importance compared to the balance on capital account