Assuming no budget constraint, when total utility is maximized, marginal utilities per dollar are equal for all products.

Question

Quizplus · Accepted Answer

When total utility is maximized without budget constraints, it implies that the consumer has allocated their resources in such a way that the marginal utility per dollar spent is equal across all products. This is a condition for consumer equilibrium, ensuring that no reallocation could increase total utility further.

Assuming No Budget Constraint, When Total Utility Is Maximized, Marginal