In a blackboardumbcedu Remaining Time 40 minutes 41 seconds

In a blackboard.umbc.edu Remaining Time: 40 minutes, 41 seconds. Question Completion Status: received from the consumption of an additional unit of a good. Oc. Marginal utility is directly related to the number of goods consumed, while total utility is inversely rela consumed. Od. Marginal utility is inversely related to the number of goods consumed, while total utility is directly rela consumed QUESTION 29 Utility is maximized for the consumption of two goods when: oa. the quantity consumed of the first good equals the quantity consumed of the second good. Ob. the price of the first good equals the price of the Second good. O , the total utility of the first good equals the total utility of the second good. Od. the marginal utility per dollar spent is equal for both goods consumed. QUESTION 30 A(a) shows combinations of goods that provide an equal level of utility or satisfaction. a. indifference curve b. marginal product curve c. marginal cost curve d. iso-cost curve Cliek Save and Submit to save and submit. Click Save All Answers to save all answers.

Solution

29.

Answer: d

This is the equality of marginal utility of two goods by dividing respective price of goods. The respective quantities on such equality give the maximum utility of two goods if consumed.

Other options are not correct:

a. Equal quantity consumption may not give the maximum utility, because goods are having different prices.

b. There might be two different goods (like tea and cement) of which prices may not be equal.

c. Total utility can’t be equal for two goods, since their prices are different.