A consumer maximizes his or her utility when expenditures are allocated such that
A)the utility received per dollar spent on the last unit of each good is equal.
B)the marginal utility is zero for each good consumed utility.
C)the utility received from the last unit of each good is equal.
D)the total number of dollars spent on each good is equal.
E)the total utility from each good is equal.

Question

Quizplus · Accepted Answer

When the utility received per dollar spent on the last unit of each good is equal, the consumer is spending their money in the most efficient way possible, maximizing their overall utility. This is because they are getting the same amount of satisfaction from the last dollar spent on each good.

A Consumer Maximizes His or Her Utility When Expenditures Are