There are two conditions necessary for a consumer to maximise her utility.One is that the marginal utilities per dollar spent on each good and service consumed are equal.What is the other condition?
A)Total spending on all goods and services must equal the amount available to be spent.
B)The consumer must be satisfied with the choices she makes.
C)The total spent on each good and service is the same.
D)The prices of each good and service consumed must not be too high.

Question

Quizplus · Accepted Answer

The other condition for a consumer to maximize her utility, besides equal marginal utilities per dollar spent, is that the total spending on all goods and services must equal the amount available to be spent. This ensures that the consumer is allocating their budget in a way that maximizes their satisfaction given their income constraints.

There Are Two Conditions Necessary for a Consumer to Maximise