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WAEC Economics 1998 Question 6

Question 6

Theory of Consumer Behaviour

If the last Naira spent on each commodity by a consumer gave him equal satisfaction, it means the consumer has been able to

  1. A.cut cost
  2. B.maximize costs
  3. C.increase profits
  4. D.maximize utility
  5. E.manage scarce resources
Show the answer and explanation

Answer: D (maximize utility)

Explanation

Equal marginal utility per naira on every good is the condition for maximum total utility.