A consumer maximizes utility when the marginal utilities of all goods
Answers
Answer:
If we discuss about the maximization and minimization of the utilities we must have to keep in mind some facts which are very important. The the and the foremost thing is the consumer equilibrium that means we should be familiar with all the terms of consumer equilibrium.
If we discuss about the consumer equilibrium it means that the consumer should have maximum satisfaction with minimum budget. The the next factor which plays a important role is the law of diminishing marginal utility.
Explanation:
Answer:
When we want to discuss on the subject about maximization and minimization of the utilities we should remember that some facts which are very vital and need attention.
The main and the foremost thing is the equilibrium of consumer strength that means we should be accustomed to all the terms related to equilibrium of consumers.
In case we discuss the consumer equilibrium it indicates that the consumer should gain or enjoy maximum satisfaction with minimum expenditure.
Another vital factor is the law of diminishing of marginal utility.