According to the equal marginal principle, consumers maximize utility when they allocate their limited incomes so that the marginal utility per dollar spent on each of their final choices in a bundle is equal.
Utility in economics refers to the pleasure or advantage obtained from using a thing. A good or service's marginal utility quantifies how much pleasure or satisfaction consumers experience as a result of increasing or decreasing their usage by one unit. Three different kinds of marginal utility exist.
In economics, marginal utility is the extra pleasure or benefit (utility) a buyer receives by purchasing an extra unit of a good or service.
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According to the equal marginal principle, consumers maximize utility when they allocate their limited ___ so that the ____ utility per dollar spent on each of their final choices in a bundle is ___.
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