Which of the following is NOT necessary for a consumer to maximize his or her utility?
A) All income is spent.
B) The marginal utility per dollar spent on all goods is equal.
C) The most money is spent on the cheapest good.
D) The bang per buck is the same on all goods.

Question

Quizplus · Accepted Answer

To maximize utility, a consumer does not need to spend the most money on the cheapest good. Instead, utility maximization is achieved when the consumer allocates their income so that the marginal utility per dollar spent is equal across all goods (B and D), and all income is spent (A).

Which of the Following Is NOT Necessary for a Consumer