Which of the following states that total utility reaches its peak when the consumer receives the maximum marginal utility per dollar of income from each and every good? Group of answer choices stabilizing rule utility-minimizing rule equilibrium rule utility-maximizing rule
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A consumer finds that for product A, the price is £5 and the consumer's marginal utility is 100 utils, while for product B, the price is £10 and the consumer's marginal utility is 160 utils. Which of the following statements is true? A. The consumer is maximizing utility from A and B. B. The consumer could only gain more utility from A and B by consuming more of both products. C. The consumer would gain more utility from A and B by consuming more A and less B. D. The consumer would gain more utility from A and B by consuming less A and more B.
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A consumer's utility function is U(x1, x2) = x1x2, with a budgetary constraint 5x1 + 10x2 = 100. Which of the following statements about the stationary point of the Lagrangean is TRUE? Select one: a. The stationary point does not exist. b. The stationary point minimizes the utility function. c. The stationary point gives a saddle point of the utility function. d. The stationary point maximizes the utility function. e. The stationary point is neither maximizes nor minimizes the utility function.
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