Asked by Melainah Alford on Jul 26, 2024
Verified
When a consumer has maximized total utility, he or she cannot increase total utility by reallocating expenditures among different products.
Reallocating Expenditures
The process of adjusting how money is spent across different goods, services, or categories to optimize outcomes or achieve desired objectives.
- Acknowledge the approaches used by people to attain the highest level of contentment within the confines of their financial resources.
Verified Answer
BP
Breanna PursellJul 30, 2024
Final Answer :
True
Explanation :
When a consumer has maximized total utility, it means they have reached a point where their allocation of expenditures among different products yields the highest possible satisfaction. Any reallocation would lead to a decrease in total utility, as it would move away from this optimal distribution.
Learning Objectives
- Acknowledge the approaches used by people to attain the highest level of contentment within the confines of their financial resources.