Which of the following is NOT an integral part of the economic model of utility maximization:
A) As we consume more of the same good, the additional increase in utility from each additional unit of consumption decreases.
B) We try to maximize our utility by choosing appropriate consumption bundles, while our income and the prices of various goods impose constraints on the bundles we can choose.
C) We choose our consumption bundles so that the marginal utility gained per dollar is approximately equal for all the goods that we consume.
D) We choose consumption bundles that contain more of everything since our choices are effectively unconstrained.

Question

Quizplus · Accepted Answer

Option D is incorrect because the economic model of utility maximization assumes that consumers face constraints such as income and prices, which limit their ability to choose bundles containing more of everything.

Which of the Following Is NOT an Integral Part of the Economic