Total utility is maximized when a consumer has spent all of his or her income and
A) spent equal amounts on all goods.
B) marginal utility is maximized.
C) the total utility per dollar from all goods is equal.
D) the marginal utility per dollar from all goods is equal.

Question

Quizplus · Accepted Answer

Total utility is maximized when the marginal utility per dollar spent on each good is equal, ensuring the consumer is getting the most satisfaction from their limited income.

Total Utility Is Maximized When a Consumer Has Spent All