Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
To maximize utility a consumer with a fixed budget will purchase quantities of goods so that the marginal utility ratios of each good and the prices of goods will be equal.
The utility can be defined as the enjoyment a consumer derives from the goods that he consumes. The wants of a person can be unlimited but their resources to meet those wants are generally limited. So the customer has to use their limited resources (fixed budget) in such a way that they can enjoy most of their wants.
So the customer will try to divide their fixed budget to purchase a number of goods so that the marginal utility should be equal. The marginal utility can be expressed as the enjoyment that the customer gets from his goods should be maximum. The marginal utility will reduce if the customer consumes one more good.
Learn more about marginal utility here:
https://brainly.com/question/15776285
#SPJ4
Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
