Question

"If a consumer always buys goods rationally, thenA) 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."

Answer 1

The correct answer is option C.

Step-by-step explanation:

Marginal utility is the increase in total utility due to consumption of an additional unit of good.

If a consumer is rational, he will try to maximize total utilities derived from his overall consumption.

The total utility will be maximized when the marginal utility per dollar spent on all the goods will be equal.

So, option C is the correct answer.