A utility-maximizing consumer will always choose to
A) minimize expenditures.
B) maximize marginal utility.
C) maximize total utility.
D) consume only the good that provides the highest utility per unit.

Question

Quizplus · Accepted Answer

A utility-maximizing consumer's goal is to maximize total utility given their budget constraint, not necessarily to minimize expenditures, maximize marginal utility, or consume only the highest utility per unit good. Total utility is the overall satisfaction or happiness a consumer receives from consuming goods and services, and maximizing this is the essence of utility maximization.

A Utility-Maximizing Consumer Will Always Choose to