A consumer maximizes utility when the marginal utilities of all goods
A)having positive money prices that are equal to zero
B)are equal
C)are maximized
D)are equal to the opportunity costs for all goods that are considered necessities
E)are exactly proportional to their market prices

Question

Quizplus · Accepted Answer

A consumer maximizes utility when the marginal utility per dollar spent is equal across all goods, meaning the marginal utilities are proportional to their prices.

A Consumer Maximizes Utility When the Marginal Utilities of All