Final answer:
To compare the value of goods and services on an equal basis for comparison, we must calculate the marginal utility per dollar.
Step-by-step explanation:
The value of goods and services can be compared on an equal basis for comparison by calculating marginal utility per dollar. Marginal utility refers to the additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service, while the marginal utility per dollar is the ratio of the marginal utility of a good or service to its price.
By comparing the marginal utility per dollar of different goods and services, consumers can determine which combination of goods provides the highest utility for their budget. This allows them to make optimal choices and maximize their satisfaction.
For example, if a consumer finds that the marginal utility per dollar of consuming an additional T-shirt is higher compared to an additional movie ticket, they would allocate more of their budget towards T-shirts to achieve the highest value for their money.