A rational consumer maximizes her
A)preferences.
B)marginal rate of substitution.
C)utility.
D)budget constraint.

Question

Quizplus · Accepted Answer

Rational consumers aim to maximize their overall satisfaction or utility from the consumption of goods and services. Therefore, the correct answer is C, utility. The other options are crucial factors in the decision-making process of rational consumers but are not the ultimate goal. Preferences guide the consumer in choosing what goods and services to consume, marginal rate of substitution helps in deciding which combination of goods to choose, and budget constraint helps in determining the affordability of the consumer's choices.

A Rational Consumer Maximizes Her