The table given below reports the total utility derived by an individual from the consumption of different units of goods A,B,andC. Table 6.4

- Refer to Table 6.4.With an income of $10,the consumer would maximize utility by purchasing _____.
A)7 units of good A,7 units of good B,and 7 units of good C
B)2 units of good A,6 units of good B,and 7 units of good C
C)3 units of good A,5 units of good B,and 6 units of good C
D)3 units of good A,6 units of good B,and 4 units of good C
E)6 units of good A,0 units of good B,and 7 units of good C

Question

The table given below reports the total utility derived by an individual from the consumption of different units of goods A,B,andC. Table 6.4

- Refer to Table 6.4.With an income of $10,the consumer would maximize utility by purchasing _____.
A)7 units of good A,7 units of good B,and 7 units of good C 
B)2 units of good A,6 units of good B,and 7 units of good C 
C)3 units of good A,5 units of good B,and 6 units of good C 
D)3 units of good A,6 units of good B,and 4 units of good C 
E)6 units of good A,0 units of good B,and 7 units of good C

Quizplus · Accepted Answer

The consumer would maximize utility by purchasing 3 units of good A, 5 units of good B, and 6 units of good C. This is because the marginal utility per dollar spent on each good is equal, and the consumer's income is $10.

The Table Given Below Reports the Total Utility Derived by an Individual