A consumer's optimum is found when
A) prices of goods go down.
B) the consumer is achieving the maximum level of utility given market prices and their limited income.
C) the marginal utility of the last dollar spent equals 0 for every good.
D) the consumer saves part of their income.
Answer: B
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A shift in the supply curve for gasoline in the United States would result if
a. people decided to travel more by automobile. b. the OPEC nations decided to stop sales of crude oil to the United States. c. the price of gasoline increased. d. the price of gasoline decreased.
The uncertainty about the return an asset will earn is
A) liquidity. B) risk. C) time to maturity. D) stochastic dominance.
Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.75 per unit, what is the profit-maximizing quantity for Sweet Grams to produce at Plant 1?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 32,500
B) 36,000
C) 32,000
D) 30,100
Refer to the table below. If Fresh Laundry is currently producing 10 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) decrease; equal to
B) decrease; less than
C) maintain; less than
D) maintain; equal to