The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-The equimarginal principle illustrates:
A)that consumers are essentially robots.
B)that people behave irrationally.
C)that people behave in rather consistent ways in order to maximize happiness.
D)that people behave in rather inconsistent ways.
E)that people will spend all their incomes.

Question

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3
 
-The equimarginal principle illustrates:
A)that consumers are essentially robots. 
B)that people behave irrationally. 
C)that people behave in rather consistent ways in order to maximize happiness. 
D)that people behave in rather inconsistent ways. 
E)that people will spend all their incomes.

Quizplus · Accepted Answer

The equimarginal principle suggests that people behave in rather consistent ways in order to maximize happiness or utility. Therefore, option C is the best choice as it correctly explains the equimarginal principle. Options A, B, D, and E are incorrect as none of them accurately depict the concept of the equimarginal principle.

The Below Table Shows the Average Utility (In Utils) Obtained