To maximize your satisfaction when deciding between two goods:
A) you must consume at the point where the marginal utility of each good is equal, no matter the price of each good.
B) you do not need to consider opportunity costs.
C) you must spend more money than you have.
D) you must get the most satisfaction out of every dollar you spend.
E) the price of each good considered must be equal.

Question

Quizplus · Accepted Answer

To maximize satisfaction when deciding between two goods, you must get the most satisfaction out of every dollar you spend. This means you must consider the marginal utility per dollar of each good and choose the good that gives you the highest amount of satisfaction per dollar spent. Opportunity costs should also be considered, but they do not necessarily dictate the choice between two goods. It is not necessary to spend more money than you have, and the price of each good considered does not need to be equal.

To Maximize Your Satisfaction When Deciding Between Two Goods