Consumers maximize their utility when: Select one: (A) they consume the good on which they place the highest overall value. (B) the total benefits are greater than total costs. (C) they diversify their consumption across goods. (D) the marginal utility per dollar is equal across all goods consumed and all income is spent.

Question

Anne Proctor

Business

9 May, 19:13

Consumers maximize their utility when: Select one: (A) they consume the good on which they place the highest overall value. (B) the total benefits are greater than total costs. (C) they diversify their consumption across goods. (D) the marginal utility per dollar is equal across all goods consumed and all income is spent.

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Answers (1)

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Hobbs · Answer 1

The correct answer is D

Explanation:

Maximize utility means that when an consumer making a decision of purchase, then he / she attempts to get the greatest or equal value possible from the amount of money invested to bought the product or service.

And consumers or buyers maximize their utility, for every single dollar they spend, the consumer spend on the item or product, which will yield or provide the greatest or equal marginal utility from per dollar of the expenditure.