Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our 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
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.
