A utility maximizing household will allocate its expenditure so that?
ECONOMICS
JAMB 1999
A utility maximizing household will allocate its expenditure so that?
- A. more naira is spent on commodities with the highest utility
- B. less naira is spent on commodities with the lowest utility
- C. the utility of the last naira spent on each commodity is equal
- D. the amount spent on each commodity is equal
Correct Answer: C. the utility of the last naira spent on each commodity is equal
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