A consumer's utility is maximized when the marginal utilities derived from additional units of goods _____
A)are less than their market prices.
B)are equal to the total utilities derived from consumption.
C)are maximized.
D)are equal to the opportunity costs of producing additional units of goods.
E)are exactly proportional to their market prices.

Question

Quizplus · Accepted Answer

A consumer's utility is maximized when the marginal utility per dollar spent on each good is equal, meaning the marginal utilities are proportional to their market prices.

A Consumer's Utility Is Maximized When the Marginal Utilities Derived