A consumer maximizes total utility when all available income is spent and the
A) marginal utility from each good is equal for all goods.
B) marginal utility per dollar from each good is equal for all goods.
C) dollars spent on the last unit of each good are equal for all goods.
D) total utility from all goods purchased is equal.

Question

Quizplus · Accepted Answer

A consumer maximizes total utility when the marginal utility per dollar spent on each good is equal, ensuring that each dollar spent contributes equally to overall satisfaction.

A Consumer Maximizes Total Utility When All Available Income Is