9 min read
This study guide covers utility maximization in AP Microeconomics, focusing on consumer choice given a limited budget. It explains key terms like utility, marginal utility (MU), and marginal utility per dollar (MU/P). The guide outlines the rules and steps for solving utility maximization problems, including the principle of MU1/P1 = MU2/P2. It also provides sample questions, practice problems, and emphasizes the law of diminishing marginal utility.
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Question 1 of 11
What does 'utility' refer to in the context of consumer choice? 🤔
The price of a good or service
The total amount of goods consumed
The satisfaction a consumer gets from consuming a good or service
The cost of producing a good