When you are maximizing your utility for product A,
A)marginal utility of A = 0.
B)marginal utility of A = 1.
C)marginal utility of A = price of
D)None of these are true.

Question

Quizplus · Accepted Answer

When maximizing utility for a product (A in this case), the marginal utility of consuming an additional unit of A should equal the price of A. This is a fundamental principle of consumer choice theory, indicating that consumers allocate their budget to equate the marginal utility per dollar spent across all goods.

When You Are Maximizing Your Utility for Product A