When choosing among products,consumers look at
A)The marginal utility per dollar and their budget constraint.
B)The total utility that will be gained at the end of all consumption.
C)Only their budget.

Question

Quizplus · Accepted Answer

Consumers will choose the product that provides the highest marginal utility per dollar while staying within their budget constraint. This means they will choose the product that provides the most satisfaction for the amount of money they have to spend. It is not sufficient to only consider total utility or budget alone, as this does not take into account the relative value of each product.

When Choosing Among Products,consumers Look at