When a Consumer Spends All of His or Her Income

question 305

Multiple Choice

When a consumer spends all of his or her income and consumes a bundle of goods such that the marginal utility per dollar from all goods is equal, then the

• A) consumer's total utility is maximized.
• B) consumer is in his or her consumption equilibrium.
• C) marginal utilities for each good are maximized.
• D) Both answers A and B are correct.

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