The fundamental condition of maximum satisfaction or utility is what principle?
A)Marginal utility principle.
B)Jevons principle.
C)Equimarginal principle.
D)Samuelson principle.
E)none of the above.

Question

Quizplus · Accepted Answer

The equimarginal principle states that a consumer can maximize satisfaction or utility by allocating their limited resources (such as money or time) between different goods in such a way that the marginal utility per unit of money or time spent is equal across goods. In other words, the consumer should spend their last amount of money or time on each good so that the additional satisfaction from that good is the same as the additional satisfaction from any other good. This principle is also known as the law of substitution or the law of equal marginal utility.

The Fundamental Condition of Maximum Satisfaction or Utility Is What