In order to maximize utility, consumers _____. a. continue to ...

[Shelles]

In order to maximize utility, consumers _____.
 a. continue to make purchases until the marginal utility of each good is zero
  b. compare the marginal utilities of the last dollar spent on each good
  c. equate the total utilities of each good consumed
  d. continue to purchase a good until total utility is equal to zero
  e. will continue purchasing till diminishing marginal utility is not achieved

Question 2

Which of the following must be true if the short-run average total cost curve is declining?
 a. Marginal cost is less than average total cost.
 b. Marginal cost is less than average variable cost.
  c. Marginal cost is greater than average total cost.
  d. Marginal cost equals average total cost.

[scikid]

Answer to Question 1

b

Answer to Question 2

a

[Shelles]

Correct answers!

[scikid]

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