For a consumer to maximize utility,in part the consumer must
A) allocate the entire available budget.
B) make the marginal utility per dollar from each good as much different as possible for all goods.
C) make the marginal utility per dollar from each good as small as possible for all goods.
D) spend as little of the budget as possible.
E) Answers A and B are both correct.

Question

Quizplus · Accepted Answer

To maximize utility, a consumer must allocate the entire available budget to ensure that no potential utility from unspent funds is lost. This involves adjusting the quantities of goods and services purchased to match the available budget while maximizing satisfaction.

For a Consumer to Maximize Utility,in Part the Consumer Must