Question

The consumer optimum is defined as Question 15 options: the set of goods and services that maximizes marginal utility for each good. the set of goods and services such that the marginal utility of each good equals zero. the set of goods and services, subject to the limited income of the consumer, that maximizes the total utility of the consumer. the set of goods and services that maximizes the marginal utility of each good consumed.

Answer 1

The correct answer is option c.

Step-by-step explanation:

A rational consumer will always try to maximize his utility given his limited income.

The consumer optimum will be that bundle of goods and services which provide maximum total utility to a consumer, given his fixed income.

The total utility will be maximized when the marginal utility of money spent on each good is equal.