Asked by
Ramos, Katrina Camille G.
on Oct 08, 2024
Verified
If a rational consumer is in equilibrium,which of the following conditions will hold true?
A) MUa = MUb = MUc = ...= MUn.
B) The marginal utility of each good purchased will be zero.
C) The marginal utility of the last dollar spent on each good purchased will be the same.
D) The total utility obtained from each good purchased will be the same.
Rational Consumer
The theoretical concept of a consumer who always makes decisions that provide the greatest benefit or utility according to their preferences.
Equilibrium
A state of balance in a system where competing forces or influences are equal; in economics, it's where supply equals demand.
Marginal Utility
The change in satisfaction or utility that an individual gains from consuming an additional unit of a good or service.
- Implement the notion of marginal utility in making consumer choices and maximizing utility.
- Determine the criteria for consumer equilibrium.
Verified Answer
AR
Learning Objectives
- Implement the notion of marginal utility in making consumer choices and maximizing utility.
- Determine the criteria for consumer equilibrium.