Author Question: Consumer equilibrium is reached when: a. an individual spends her entire income. b. there is no way ... (Read 87 times)

joesmith1212 · **on:** Jun 30, 2018

Consumer equilibrium is reached when:
a. an individual spends her entire income.
b. there is no way a consumer, given the available income, could increase her satisfaction.
c. marginal utility begins to diminish.
d. marginal utility is maximized, subject to the available income.

Question 2

The marginal factor cost (MFC) is the:
a. value of the additional output that an extra unit of a resource can produce.
b. additional cost of employing an additional unit of a resource.
c. additional cost of producing an additional unit of output.
d. the ratio of the total fixed cost to the total cost of production.
e. ratio of total cost to the total amount of resources employed.