Total utility is maximized in the consumption of two goods by
A) maximizing expenditure on each good.
B) equating the marginal utility for each good consumed.
C) equating the total utility of each good divided by its price.
D) equating the marginal utility per dollar for each good consumed.
D
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In the figure above, the total revenue from pizza per day is
A) $60,000. B) $100,000. C) $40,000. D) $80,000. E) $50,000.
A Nash equilibrium is
A) reached when an oligopoly's market demand and supply intersect. B) reached when each player chooses the best strategy for himself and for the group. C) an equilibrium comprising non-dominant strategies only. D) reached when each player chooses the best strategy for himself, given the other strategies chosen by the other players in the group.
State governments in the United States can raise revenue by all the following means except
A) increasing income taxes. B) increasing taxes on corporate profits. C) increasing sales taxes. D) increasing the money supply.
Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10, then the price elasticity of demand equals
A) -1.5. B) -0.67. C) -4. D) -2.5.