Consider an individual with preferences over two goods. This consumer is maximising utility when: a) They receive the same utility from each good. b) They spend the same amount of money on each good. c) The MRS is greater than the ratio of the prices of the two goods. d) None of the above
Consider an individual with preferences over two goods. This consumer is maximising utility when: a) They receive the same utility from each good. b) They spend the same amount of money on each good. c) The MRS is greater than the ratio of the prices of the two goods. d) None of the above
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 8QFR
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1) Consider an individual with preferences over two goods. This consumer is maximising utility when:
a) They receive the same utility from each good.
b) They spend the same amount of money on each good.
c) The MRS is greater than the ratio of the prices of the two goods.
d) None of the above.
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