A Consumer Maximizes Total Utility When All Available Income Is

question 3

Multiple Choice

A consumer maximizes total utility when all available income is spent and the

• A) marginal utility from each good is equal for all goods.
• B) marginal utility per dollar from each good is equal for all goods.
• C) dollars spent on the last unit of each good are equal for all goods.
• D) total utility from all goods purchased is equal.

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Definitions:

Frosty Mug

A mug that has been chilled or frozen to keep beverages cold for a longer period, enhancing the drinking experience.

Purchasing

The act of acquiring goods or services to fulfill the needs of an individual or organization.

Car

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.

Necessity Recognition

A rephrased definition of Need Recognition; it is the first step in the purchasing decision process, where a consumer realizes a vital requirement that needs to be fulfilled.