A consumer will maximize utility when all income is spent and the marginal utility is equal for all goods.

Name: A consumer will maximize utility when all income is spent and the marginal utility is equal for all goods.
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Question

Quizplus · Accepted Answer

A consumer maximizes utility when the marginal utility per dollar spent is equal across all goods, not when the marginal utility is equal for all goods.

A Consumer Will Maximize Utility When All Income Is Spent