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Suppose the Consumer Has Allocated His or Her Entire Budget

Question 37

Multiple Choice

Suppose the consumer has allocated his or her entire budget.Which of the following conditions is also required for total utility to be maximized?


A) Marginal utility has decreased to zero for all goods.
B) The least inexpensive combination of goods has been purchased.
C) The marginal utility for each good is equal.
D) The marginal utility divided by price for each good is equal.
E) The number of units of each good consumed must be the same.

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