-For a consumer to maximise utility, in part the consumer must
A) make the marginal utility per dollar from each good as different as possible for all goods.
B) spend as little of the budget as possible.
C) allocate the entire available budget.
D) make the marginal utility per dollar from each good as small as possible for all goods.
E) Answers A and B are both correct.

Question

-For a consumer to maximise utility, in part the consumer must
A) make the marginal utility per dollar from each good as different as possible for all goods. 
B) spend as little of the budget as possible. 
C) allocate the entire available budget. 
D) make the marginal utility per dollar from each good as small as possible for all goods. 
E) Answers A and B are both correct.

Quizplus · Accepted Answer

To maximize utility, a consumer must allocate their entire available budget to ensure no utility is left unattained that could be achieved with the remaining budget. This principle is part of the utility maximization rule, which also includes equalizing the marginal utility per dollar spent across all goods.

-For a Consumer to Maximise Utility, in Part the Consumer