Suppose a Consumer Wants to Obtain the Highest Possible Satisfaction

question 36

Multiple Choice

Suppose a consumer wants to obtain the highest possible satisfaction from goods purchased on a fixed budget. Which of the following must be equal for all goods?

• A) Total utility.
• B) Marginal utility.
• C) Average utility.
• D) Marginal utility per dollar.

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Definitions:

Direction

Guidance or instructions on the course or action to be taken, often aimed at achieving a specific goal or outcome.

Intensity

Intensity describes the degree of strength, power, or force of an action, emotion, or in a physical sense, often indicating the magnitude or seriousness of a phenomenon.

Collectivism

A cultural value that prioritizes group goals over individual goals and emphasizes the importance of cohesion within social groups.

Individualism

A social theory favoring freedom of action for individuals over collective or state control, emphasizing personal independence and the importance of individual self-reliance.