To maximize satisfaction from purchasing several different goods and services, expenditures must be allocated in a way that:

Question

Quizplus · Accepted Answer

The principle of maximizing satisfaction (or utility) from purchasing goods and services involves allocating expenditures so that each dollar spent adds the most utility or satisfaction to the purchaser. This is achieved by equating the marginal utility per dollar spent across all goods and services, rather than simply saving some income, focusing solely on high utility items without considering their prices, or aiming to acquire the largest quantity of goods and services.

To Maximize Satisfaction from Purchasing Several Different Goods and Services