A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the: O a. marginal utility of each good is maximized. O b. marginal ut ility per dollar spent is maximized for each good. O c. marginal utility per dollar spent is the same for all goods. O d. total utility is the same for each good.
A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the: O a. marginal utility of each good is maximized. O b. marginal ut ility per dollar spent is maximized for each good. O c. marginal utility per dollar spent is the same for all goods. O d. total utility is the same for each good.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Inability of one to determine marginal value of health care implies that the traditional approach to demand theory does not work very well for health-care services.
True or false?
![A consumer with a fixed income will maximize utility when each
good is purchased in amounts such that the:
of
O a. marginal utility of each good is maximized.
O b. marginal ut ility per dollar spent is maximized for each
good.
estion
O c. marginal utility per dollar spent is the same for all goods.
O d. total utility is the same for each good.
a
ip
近](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ec5e8f3-2a53-43b0-8d2f-47385ab4e60b%2F073928de-c764-41a0-bbd3-275e358746a5%2F58w16gd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A consumer with a fixed income will maximize utility when each
good is purchased in amounts such that the:
of
O a. marginal utility of each good is maximized.
O b. marginal ut ility per dollar spent is maximized for each
good.
estion
O c. marginal utility per dollar spent is the same for all goods.
O d. total utility is the same for each good.
a
ip
近
![Which of the following statements about productive efficiency is
true?
X: It means that an economy is producing at a point on its
production possibility frontier.
Y: It will arise if all firms face the same prices for any inputs that are
used by more than one firm, and if all firms are economically
efficient.
O A. Both X and Y
О В. Хonly
O C. Yonly
O D. Neither X nor Y](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ec5e8f3-2a53-43b0-8d2f-47385ab4e60b%2F073928de-c764-41a0-bbd3-275e358746a5%2F9osybd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following statements about productive efficiency is
true?
X: It means that an economy is producing at a point on its
production possibility frontier.
Y: It will arise if all firms face the same prices for any inputs that are
used by more than one firm, and if all firms are economically
efficient.
O A. Both X and Y
О В. Хonly
O C. Yonly
O D. Neither X nor Y
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