A person maximizes utility when he equalizes the ________ across products.
A) total utility
B) total utility per dollar spent
C) marginal utility
D) marginal utility per dollar spent

Question

Quizplus · Accepted Answer

The principle of utility maximization states that a person maximizes utility when the marginal utility per dollar spent is equalized across all products. This means that for every additional dollar spent, the person gains the same amount of additional satisfaction or utility from each product, ensuring that their spending is optimized for maximum utility.

A Person Maximizes Utility When He Equalizes the ________ Across