Answer to Question #96105 in Microeconomics for Julianna

Question #96105
If people do not have a complete mental picture of total utility for every level of consumption, how can they find their utility-maximizing consumption choice?
1
Expert's answer
2019-10-08T09:40:09-0400

 Finding Utility-maximizing Consumption Choice

If people do not have any intellectual picture of utility, the utility-maximizing consumption choice can be found by determining the marginal utility for every level of consumption. One can choose a starting point at random and compare the marginal utility gains and losses of moving to neighboring points  and finally seek out the preferred choice.

           Reference.

BCcampass <http://opentextbc.ca/principlesofeconomics/chapter/6-1-consumption-choices/

 


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS