Liane maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each good
A) is diminishing.
B) is maximized.
C) is the same.
D) is increasing.

Question

Quizplus · Accepted Answer

Liane maximizes her total utility when the marginal utility per dollar spent on each good is the same, according to the equimarginal principle in consumer choice theory.

Liane Maximizes Her Total Utility When She Allocates All of Her