A consumer maximizes his or her utility when expenditures are allocated such that
A) the utility received per dollar spent on the last unit of each good is equal.
B) the total number of dollars spent on each good is equal.
C) the utility received from the last unit of each good is equal.
D) the marginal utility is zero for each good consumed utility.
E) the total utility from each good is equal.

Question

Quizplus · Accepted Answer

A consumer maximizes utility when the marginal utility per dollar spent is equal across all goods, ensuring the most efficient allocation of resources for maximum satisfaction.

A Consumer Maximizes His or Her Utility When Expenditures Are