Question : Statement 1: The concept of marginal utility becomes irrelevant when the consumer faces perfect competition.

Statement 2: In perfect competition, the consumer is a price taker and must accept the market price without considering individual preferences.

Option 1: Statement 1 is true, and statement 2 is false.

Option 2: Statement 1 is false, and statement 2 is true.

Option 3: Both statement 1 and statement 2 are true.

Option 4: Both statement 1 and statement 2 are false.

Question : Assertion: The concept of marginal utility becomes irrelevant when the consumer faces perfect competition.

Reason: In perfect competition, the consumer is a price taker and must accept the market price without considering individual preferences.

Question : Statement 1: The consumer achieves equilibrium when the marginal utility per dollar spent is equal for all goods.

Statement 2: At equilibrium, the consumer maximizes their total utility within the constraints of their budget.

Question : Statement 1: The concept of consumer surplus represents the additional satisfaction gained by consuming a good.

Statement 2: Consumer surplus can be calculated by finding the difference between the total utility and the marginal utility of the last unit consumed.

Question : Statement 1: Marginal utility is the additional satisfaction derived from consuming one additional unit of a good.

Statement 2: The law of diminishing marginal utility states that as a consumer consumes more of a good, the additional satisfaction derived from each

Question : Statement 1: The slope of the budget line represents the relative price of two goods.

Statement 2: The consumer achieves equilibrium when the marginal rate of substitution is equal to the relative price of the goods.