The "equal bang for the buck" idea means that the consumer is equating:
A)the marginal utilities of all of the goods purchased.
B)the prices of all the goods purchased.
C)the marginal utilities of the last dollar spent on each good purchased.
D)the ratios of the last dollar spent on each good purchased.

Question

Quizplus · Accepted Answer

The "equal bang for the buck" idea means that the consumer is equating the marginal utilities of the last dollar spent on each good purchased. This means that the consumer is getting the same level of satisfaction (or "bang") for the last dollar spent on each good. This ensures that the consumer is maximizing their overall level of satisfaction with their spending. The "equal bang for the buck" idea means that the consumer is trying to maximize their utility by spending their last dollar on goods in a way that gives them the same level of satisfaction or marginal utility. This means that they are comparing the marginal utilities of the last dollar spent on each good purchased, hence the correct answer is C.

The "Equal Bang for the Buck" Idea Means That the Consumer