Utility theory assumes that a consumer tries to

A. maximize the difference between total and marginal utility.
B. maximize her average utility.
C. maximize her marginal utility.
D. maximize her total utility.


Answer: D

Economics

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High price and low total utility indicate

A. low marginal utility. B. large quantities are sold. C. high marginal utility. D. a high price/marginal utility ratio.

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Changes in supply and demand in the labor market will cause changes in wages

a. True b. False Indicate whether the statement is true or false

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Suppose the price level rises, but the number of dollars you are paid per hour stays the same. This means that your

a. nominal wage is higher. b. nominal wage is lower. c. real wage is higher. d. real wage is lower.

Economics

Refer to the above graph. Consider a monopolist in short-run equilibrium. This monopolist has total fixed cost equal to area:

A. ABED. B. ADFC. C. 0CFQ.  D. BEFC.

Economics