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julia-pushkina [17]
3 years ago
11

Which of the following is an assumption of the decision-making process followed by consumers to maximize utility? rev: 04_09_201

8 Multiple Choice The consumer oftentimes is not sure about her preferences. Marginal utility always increases as more units of a good are consumed. The consumer’s income increases as prices of goods increase. The consumer considers the prices of the products.
Business
1 answer:
kari74 [83]3 years ago
7 0

Answer:

The correct answer is: The consumer considers the prices of the products.

Explanation:

When taking the decision regarding how to maximize utility the consumers will consider the prices of the products. The consumer will be able to maximize utility at the point where the marginal utility of money spent on each commodity is equal.

We can represent it as,

\frac{MU\ of\ good\ A}{Price\ of\ good\ A} = \frac{MU\ of\ good\ B}{Price\ of\ good\ B}

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Answer:

Bond, Treasury and Risk are the correct words that can satisfy the statements given.

Explanation:

A(n) bond is a long-term agreement under which a borrower allows to make installments of interest as well as principal on particular dates as we know this is a definition of bound. So the word bond satisfies the statement requirement.

There are four main types reflecting who the issuers are: treasury, corporate, municipal, and foreign. Each type differs with respect to risk and expected return. All have some common characteristics even though they may have different contractual features. Here in the second statement, the word treasury satisfies the statement requirement as we know that (Treasury Securities. Bonds, notes as well as bills announced by the United Statement government are frequently known as “Treasuries” and are the maximum-quality securities accessible.)

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g A monopoly may exist because Question 21 options: a) government has refused to grant a public franchise. b) one firm has the e
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Answer:

B. one firm has the exclusive ownership of a scarce resource.

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Monopoly can be regarded as market structure whereby a single seller thrives, this is a structure whereby the seller sells a unique product in the market. As far as monopoly market is concerned, no competition is been encontered by the manufacturer , because he is the only one selling goods with no close substitute. As a result of this there is restrictions of the entry of other sellers in the market.

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