A consumer maximizes total utility from a given amount of income when the
A)Marginal utility obtained from the last dollar spent on each good is the same.
B)Marginal utility of the last unit of each good is the same.
C)Total utility obtained from each product is the same.

Question

Quizplus · Accepted Answer

A consumer maximizes total utility when the marginal utility per dollar spent is equal across all goods, ensuring the most efficient allocation of their budget.

A Consumer Maximizes Total Utility from a Given Amount of Income