Microeconomics

MCQ - 151-4161

Question:

Which of the following statements is true of a consumer’s utility-maximizing behavior?

As consumption of good X increases, total utility increases at an increasing rate.
The consumer should stop consuming good X when marginal utility is maximized.
The consumer has maximized utility between two goods X and Y when the quantities of the two goods are equalized.
The consumer should stop consuming good X when marginal utility is maximized.
As consumption of good X increases, the marginal utility per dollar spent on good X also increases.

Correct Answer: D

Explanation:

Utility-maximizing consumers do not equate the units of two goods, they equate MU/P for each good.

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269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Which of the following statements is true of a consumer’s utility-maximizing behavior? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 151-4161.

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