When Marietta chooses to only purchase a combination of goods that lie within her budget line, she:
A) is decreasing utility.
B) is maximizing utility.
C) likely has negative savings.
D) must reduce the quantity.

Question

Quizplus · Accepted Answer

Marietta is maximizing utility by choosing a combination of goods within her budget line, as this indicates she is selecting the best possible mix of goods that she can afford, aiming to achieve the highest satisfaction or utility given her budget constraints.

When Marietta Chooses to Only Purchase a Combination of Goods