If a rational consumer is in equilibrium,which of the following conditions will hold true? A) MU_a = MU_b = MU_c = ...= MU_n. B) The marginal utility of each good purchased will be zero. C) The marginal utility of the last dollar spent on each good purchased will be the same. D) The total utility obtained from each good purchased will be the same.

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Quizplus · Accepted Answer

In equilibrium, a rational consumer will allocate their budget in such a way that the marginal utility per dollar spent on each good is equal. This means that the marginal utility of the last dollar spent on each good purchased will be the same. Therefore, condition C is true. Condition A is not necessarily true because the marginal utility of each good may be different. Condition B is not true because if the marginal utility of each good was zero, the consumer would not purchase any goods. Condition D is not necessarily true because the total utility obtained from each good may be different.

If a Rational Consumer Is in Equilibrium,which of the Following