If the marginal utility of each good a consumer buys does not diminish but remains constant, we should see consumers
A)buying no goods at all
B)spending all of their income on the good with the highest marginal utility
C)buying one unit of each good
D)buying only the least expensive good
E)leaving the store in total confusion

Question

Quizplus · Accepted Answer

If the marginal utility of a good remains constant, consumers will maximize their total utility by spending all their income on the good with the highest marginal utility, as each additional unit provides the same level of satisfaction.

If the Marginal Utility of Each Good a Consumer Buys