Which of the following best describes the consumer optimum?
A) MUa/Pa = TUb/Pb
B) MUa/TUa = Pa
C) MUa/Pa = MUb/Pb = . . . = MUz/Pz.
D) change in TU/change in P = MU

Question

Quizplus · Accepted Answer

Consumer optimum occurs when the marginal utility per dollar spent on each product is the same (MUa/Pa = MUb/Pb = . . . = MUz/Pz). This ensures that the consumer is allocating their budget in a way that maximizes their overall satisfaction (utility). Therefore, choice C is the best answer.

Which of the Following Best Describes the Consumer Optimum