According to the utility-maximizing rule, a consumer maximizes utility when marginal utility per dollar spent is
A) lowest for all goods.
B) highest for all goods.
C) equal for all goods.
D) zero for all goods.

Question

Quizplus · Accepted Answer

The utility-maximizing rule states that a consumer maximizes utility when the marginal utility per dollar spent is equal for all goods. This ensures that the last dollar spent on each good provides the same level of satisfaction, optimizing the allocation of the consumer's budget.

According to the Utility-Maximizing Rule, a Consumer Maximizes Utility When