Suppose you want to equalize your marginal utility per dollar across all the goods that you consume.If your marginal utility per dollar is higher for one of those items than for any others,you should
A)consume less of it to reduce your marginal utility.
B)consume more of it to reduce your marginal utility.
C)consume more of the other goods to equalize your marginal utilities per dollar.
D)consume more of all goods in equal proportions.

Question

Quizplus · Accepted Answer

To equalize marginal utility per dollar, you should consume more of the item with higher marginal utility per dollar, which will decrease its marginal utility and help balance it with other goods.

Suppose You Want to Equalize Your Marginal Utility Per Dollar