Purchasing goods such that the ratio of marginal utility to price is equal across all goods results in the

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Quizplus · Accepted Answer

Purchasing goods such that the ratio of marginal utility to price is equal across all goods, results in the greatest total utility because it ensures that each additional unit of a good provides the same increase in utility per dollar spent. This leads to an optimal allocation of income and maximizes overall satisfaction or utility.

Purchasing Goods Such That the Ratio of Marginal Utility to Price