A consumer is buying the optimal amount of goods when
A) the total utility from the purchases on all the goods purchased is the same.
B) the marginal utility from the purchases of all the goods purchased is the same.
C) the marginal utility per last dollar spent on all of the goods purchased is the same.
D) the marginal utility from the purchases of all the goods is equal to 1.

Question

Quizplus · Accepted Answer

The consumer is buying the optimal amount of goods when the marginal utility per last dollar spent on all of the goods purchased is the same. This means that the consumer is allocating their budget in such a way that they are getting the most satisfaction possible from each dollar spent. Any additional purchases beyond this point would reduce the consumer's overall satisfaction.

A Consumer Is Buying the Optimal Amount of Goods When