The consumer optimum is defined as
A) the set of goods and services that maximizes marginal utility for each good.
B) the set of goods and services such that the marginal utility of each good equals zero.
C) the set of goods and services that maximizes the marginal utility of each good consumed.
D) the set of goods and services, subject to the limited income of the consumer, that maximizes the total utility of the consumer.

Question

Quizplus · Accepted Answer

The consumer optimum is the combination of goods and services that maximizes the total utility of the consumer subject to their limited income. This means that the consumer will allocate their income to the goods and services that give them the most satisfaction and utility, until they cannot afford any more. This point of maximum satisfaction is their consumer optimum.

The Consumer Optimum Is Defined as