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Dale Spends His Entire Budget in Such a Way That

Question 91

Multiple Choice

Dale spends his entire budget in such a way that the marginal utility per dollar spent on each good is identical.Which of the following is true?


A) His marginal utility will be zero if he reallocates his income.
B) He can increase his utility if he reallocates his income.
C) He will reduce his utility if he reallocates his income.
D) He will minimize his marginal utility if he reallocates his income.
E) He will maximize his marginal utility if he reallocates his income.

Correct Answer:

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