If Kim's marginal utility per dollar for hot dogs is less than her marginal utility per dollar for French fries, she should buy more French fries and fewer hot dogs to maximize her total utility.

Question

Quizplus · Accepted Answer

To maximize total utility, consumers should allocate their budget in a way that equalizes the marginal utility per dollar across all goods. If Kim's marginal utility per dollar from French fries is higher than from hot dogs, buying more French fries and fewer hot dogs will move her closer to this optimal allocation.

If Kim's Marginal Utility Per Dollar for Hot Dogs Is