Managerial Economics-OMBA8 Home / My courses / Business Administration / Manager

Question

Managerial Economics-OMBA8 Home / My courses / Business Administration / Managerial Economics OMBA 8 / Week 3- July 19, 2018- Theory ot Consumer Behavior and Elasticity of Demand / Chapter 5 Quiz-Due by midn The consumer chooses the bundle of goods that maximizes his utility and spends Not yet answered Points out of 1.00 all his income. Which of the following statements is correct? Select one: a. The addition to utility of the last unit of the good per dollar is equal b. The addition to utility of the last unit of the good is equal across all c. Expenditures on all goods are equal. question across all goods. goods d. The marginal utilities of all goods are equal

Explanation / Answer

a. the addition to the utility of the last unit of the good per dollar is equal across all the goods.

This the cardinal rule for maximising utility by consuming two or more goods within fixed budget. The combination of goods for which the marginal utility per dollar for each good is same is the optimal consumption bundle.

Please like my answer

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.