Question

The table shows the utility that jason receives from dvds and spy novels. when jason is maximizing his total utility he spends all his available income and equalizes the​ ______.   

a. marginal utility per dollar for all goods
b. marginal utility for all goods
c. total utility per dollar for all goods
d. total utility for all goods

Answer 1

The answer is to equalizes the marginal utility per dollar for all goods. Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.