In Order to Maximize His or Her Utility,a Consumer Must

question 147

Multiple Choice

In order to maximize his or her utility,a consumer must allocate his or her entire budget and

• A) buy the combination of goods that makes the marginal utility per dollar from all goods as small as possible.
• B) buy the combination of goods that equalizes the total utility per dollar from all goods.
• C) do nothing else because when the entire budget is allocated, utility is maximized.
• D) buy the combination of goods that equalizes the marginal utility per dollar from all goods.
• E) buy the combination of goods that makes the marginal utility per dollar from all goods as large as possible.

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Definitions:

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