Assertion (A): A consumer in equilibrium with one good gets the maximum possible total utility from that good.
Reason (R): At the one-good equilibrium, MU in rupees equals the price.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A is false: TU would be highest at MU = 0, but the consumer stops earlier, where MU = price, because money has other uses.
R is true.

Concept: Maximum satisfaction versus maximum TU
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsEquilibrium with one good

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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

Assertion (A): A consumer in equilibrium with one good gets the maximum possible total utility from that good.Reason (R): At the one-good equilibrium, MU in rupees equals the price.

Explanation

Assertion (A): A consumer in equilibrium with one good gets the maximum possible total utility from that good.
Reason (R): At the one-good equilibrium, MU in rupees equals the price.