When Frankie spends all his money in such a way that the marginal utility per dollar is the same for all final purchases of products he consumes, Frankie has maximized
A) his marginal utility.
B) his total utility.
C) the number of products he consumes.
D) his total expenditure on all products.

Question

Quizplus · Accepted Answer

Frankie has maximized his total utility when the marginal utility per dollar is equal across all products, as this indicates he is getting the most satisfaction possible from his spending.

When Frankie Spends All His Money in Such a Way