Asked by Chris Palomino on Jun 13, 2024
Verified
In deciding what to buy, the consumer will choose the good with the
A) highest marginal utility.
B) lowest price.
C) highest marginal utility-to-price ratio.
D) lowest marginal utility-to-price ratio.
Marginal Utility-To-Price Ratio
A measure of the additional satisfaction gained from consuming one more unit of a good or service relative to its cost.
Consumer Choice
The decision-making process by which individuals select and consume products or services to satisfy their desires and needs.
Highest Marginal
Referring to the highest additional cost or benefit gained from producing or consuming one extra unit of a good or service.
- Implement the principle of the marginal utility-price ratio to enhance utility.
Verified Answer
Learning Objectives
- Implement the principle of the marginal utility-price ratio to enhance utility.
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