A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the:
A. Total utility is the same for each good
B. Marginal utility of each good is maximized
C. Marginal utility per dollar spent is the same for all goods
D. Marginal utility per dollar spent is maximized for each good
C. Marginal utility per dollar spent is the same for all goods
You might also like to view...
Christy is a telemarketer. She estimates that this summer, she has a 0.2 probability of earning $10,000, a 0.5 probability of earning $5,000, and a 0.3 probability of earning only $1,000. What is Christy's expected income?
A) $7,256 B) $5,333 C) $4,800 D) $4,000
If marginal benefit is greater than marginal cost, output is inefficiently high
Indicate whether the statement is true or false
In a competitive labor market, with one variable factor, the supply of labor to the firm is
A) equal to the marginal expenditure curve. B) equal to the demand curve for labor. C) greater than the marginal expenditure curve. D) equal to the marginal revenue product curve.
The marginal physical product of labor in Figure 21.1 is negative for the
A. Fourth worker. B. Fifth worker. C. Third worker. D. Sixth worker.