Asked by Elizabeth Inyang on Jun 12, 2024
Verified
At the optimal consumption bundle:
A) the marginal utility of all goods consumed is equal.
B) the marginal utility per dollar spent is equalized across all goods consumed.
C) the price of all goods consumed is equal.
D) total utility from all goods consumed is equal.
Optimal Consumption
The point at which a consumer maximizes their satisfaction or utility from consumption under their budget constraints.
Marginal Utility
Marginal utility is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.
Dollar Spent
A unit of expenditure, often used to discuss the impact or value of spending in terms of economic activity or investment.
- Assimilate the concept of equal marginal utility per dollar as essential for utility maximization.
Verified Answer
Learning Objectives
- Assimilate the concept of equal marginal utility per dollar as essential for utility maximization.
Related questions
Wolfgang Really Likes Both Rutabagas and Broccoli ...
If Paloma Is Consuming the Utility-Maximizing Quantities of Pizza and ...
If a Consumer Derives More Utility by Spending an Additional ...
Assume That Diminishing Marginal Utility Applies to Both Dish Soap ...
Wolfgang Really Likes Both Rutabagas and Broccoli ...