QuestionMay 4, 2026

Purchasing goods such that the ratio of marginal utility to price is equal across all goods results in the: Multiple Choice greatest total utility. lowest expenditure. greatest marginal urility. same expenditure on all goods.

Purchasing goods such that the ratio of marginal utility to price is equal across all goods results in the: Multiple Choice greatest total utility. lowest expenditure. greatest marginal urility. same expenditure on all goods.
Purchasing goods such that the ratio of marginal utility to price is equal across all goods results in the:
Multiple Choice
greatest total utility.
lowest expenditure.
greatest marginal urility.
same expenditure on all goods.

Solution
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Answer

greatest total utility. Explanation 1. Identify economic principle According to utility maximization theory, total utility is maximized when \frac{MU_x}{P_x} = \frac{MU_y}{P_y} for all goods. 2. Link to result This condition ensures the consumer allocates resources to obtain the **greatest total utility** from their budget.

Explanation

1. Identify economic principle <br /> According to utility maximization theory, total utility is maximized when $\frac{MU_x}{P_x} = \frac{MU_y}{P_y}$ for all goods. <br />2. Link to result <br /> This condition ensures the consumer allocates resources to obtain the **greatest total utility** from their budget.
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