In consumer equilibrium,which of the following is true?
A) The marginal utility from the consumption of each good is the same.
B) The marginal utility from the consumption of each good is zero.
C) The marginal utility from the consumption of the last dollar's worth of each good is the same.
D) The total utility from the consumption of each good is the same.

Question

Quizplus · Accepted Answer

In consumer equilibrium, the consumer allocates their budget in such a way that the marginal utility per dollar spent on each good is the same. This means that the consumer is getting the same additional satisfaction (marginal utility) from the last dollar spent on each good. Therefore, choice C is the correct option. Choices A, B, and D are incorrect as they do not accurately describe consumer equilibrium.

In Consumer Equilibrium,which of the Following Is True