Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To minimize total utility
B
To maximize total utility
C
To equalize marginal utility across goods
D
To achieve zero utility
Understanding the Answer
Let's break down why this is correct
Answer
The primary goal of a consumer in the context of utility maximization is to get the most satisfaction or happiness from the goods and services they purchase with their limited money. This means that consumers want to choose the combination of products that gives them the highest total utility, or enjoyment, for the amount they spend. For example, if someone has $10 to spend, they might choose between buying two pizzas or five sandwiches. By comparing how much happiness each option brings them, they can make a choice that maximizes their overall satisfaction with that $10. Ultimately, consumers aim to make the best possible choices to enjoy their resources fully.
Detailed Explanation
Consumers want to get the most satisfaction from their choices. Other options are incorrect because Some might think minimizing total utility is the goal; Equalizing marginal utility sounds smart, but it's not the main goal.
Key Concepts
total utility
Topic
Consumer Utility Maximization
Difficulty
easy level question
Cognitive Level
understand
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