A consumer has maximized his or her utility by consuming
A) at the midpoint of the budget constraint line.
B) at the midpoint of the demand curve.
C) so that the total utility of all goods consumed is the same.
D) so that the ratio of marginal utility to price is the same for all goods consumed.

Question

Quizplus · Accepted Answer

A consumer maximizes utility when the ratio of marginal utility to price is equal for all goods consumed, according to the principle of equi-marginal utility.

A Consumer Has Maximized His or Her Utility by Consuming