If a consumer always buys goods rationally, then
A)the total utilities of the different goods consumed will be equal.
B)the average utilities of the different goods consumed will be equal.
C)the marginal utility per dollar spent on all goods will be equal.
D)the marginal utility of the different goods consumed will be equal.

Question

Quizplus · Accepted Answer

If a consumer always buys goods rationally, then they will allocate their spending in a way that maximizes their total utility given their budget constraint. This means that they will continue to buy a good until the marginal utility per dollar spent is equal across all goods. Therefore, choice C is the best answer as it reflects this behavior. The other choices may not be necessarily true as different goods can have different levels of total, average, or marginal utilities.

If a Consumer Always Buys Goods Rationally, Then