In dealing with utility, we assume that the ability of consumers to purchase goods and services is:
A) infinite.
B) irrelevant.
C) limited.
D) infinitesimal.

Question

Quizplus · Accepted Answer

The assumption of limited utility matches the reality of finite resources that consumers have to allocate towards goods and services. Consumers must make choices about what to purchase based on their budget and availability of resources. Therefore, the ability of consumers to purchase goods and services is limited.

In Dealing with Utility, We Assume That the Ability of Consumers