Optimal Consumption and Marginal Utility
According to the optimal consumption rule, if a consumer’s marginal utility per dollar spent on Good A is greater than that for Good B, which of the following actions should the consumer take to maximize total utility?
A
Continue spending the same amounts on both goods to maintain balanced consumption regardless of marginal differences.
B
Increase spending on Good B to boost its marginal utility until it matches Good A.
C
Reallocate spending from Good B to Good A until the marginal utility per dollar is equalized across both goods.
D
Stop consuming Good A altogether to force a natural balance in utility levels.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | tjoshi770 | 3 | 3 | 0m 35s | 265 |
| #2 | kimkevinlov1026 | 2 | 3 | 1m 13s | 117 |
| #3 | george.joseph3g | 1 | 1 | 0m 00s | 100 |
| #4 | chutajisan | 1 | 1 | 0m 00s | 100 |
| #5 | shivakumarshruti1 | 1 | 1 | 0m 41s | 59 |
| #6 | 17270 | 0 | 1 | 0m 00s | -10 |
| #7 | Lily.Han29 | 0 | 1 | 0m 14s | -24 |
Items per page:
10
1 – 7 of 7