The utility analysis theory assumes that consumers try to
A) maximize their average utility.
B) maximize their marginal utility.
C) maximize the difference between total and marginal utility.
D) maximize their total utility.

Question

Quizplus · Accepted Answer

The utility analysis theory assumes that consumers try to maximize their total utility, which is the sum of the marginal utilities of each unit consumed. Maximizing marginal utility or the difference between total and marginal utility may be important considerations, but the ultimate goal is to maximize overall satisfaction or utility.

The Utility Analysis Theory Assumes That Consumers Try to