In order for a consumer to choose between two different goods, he has to take into consideration the
A) marginal utility of production.
B) marginal utility divided by the price.
C) marginal utility plus the price.
D) total utility divided by price.

Question

Quizplus · Accepted Answer

The correct concept is the marginal utility per dollar spent (or per unit of currency), which is calculated as the marginal utility divided by the price. This helps consumers decide how to allocate their limited resources to maximize their satisfaction.

In Order for a Consumer to Choose Between Two Different