A consumer maximizes her total utility from a bundle of goods when her marginal utility from each good is equal.

Name: A consumer maximizes her total utility from a bundle of goods when her marginal utility from each good is equal.
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Question

Quizplus · Accepted Answer

A consumer maximizes total utility when the marginal utility per dollar spent is equal across all goods, not when the marginal utility from each good is equal.

A Consumer Maximizes Her Total Utility from a Bundle of Goods