Consumers allocate their resources based on the ______?

shakurrebirth

2 months ago

The correct answer is A. Law of diminishing marginal utility.
Consumers allocate their limited resources in a way that:
Maximizes their total satisfaction (utility)
By comparing the marginal utility from different goods

This behavior is based on the Law of Diminishing Marginal Utility, which states that:
"As more units of a good are consumed, the additional satisfaction (marginal utility) decreases".