Suppose Lisa, who is a freelance publicist for several alternative rock labels, earns $50,000 annually. To maximize
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Suppose Lisa, who is a freelance publicist for several alternative rock labels, earns $50,000 annually. To maximize her total utility, she will spend the income in such a way that
a. the marginal utility she derives from every good she buys is zero.
b. the marginal-utility-to-price ratio for each of the goods she buys is zero.
c. the marginal-utility-to-price ratio for each of the goods she buys is at its maximum.
d. the marginal-utility-to-price ratio for each of the goods she buys is at its minimum.
e. the marginal-utility-to-price ratio for each of the goods she buys is equal.
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