What is a rational consumer likely to have maximized
A)preferences
B)marginal rate of substitution
C)utility
D)budget constraint

Question

Quizplus · Accepted Answer

A rational consumer is likely to have maximized their utility, which is the satisfaction or happiness they derive from consuming a certain bundle of goods and services. By consuming more of a good, the consumer gains more satisfaction up to a certain point, beyond which the additional utility derived from consuming more diminishes. The consumer maximizes utility by allocating expenditure in such a way that the marginal utility from the last dollar spent on each good is equal.

What Is a Rational Consumer Likely to Have Maximized