Answer to Question #96105 in Microeconomics for Julianna

Question

If people do not have a complete mental picture of total utility for every level of consumption, how can they find their utility-maximizing consumption choice?

Answer 1

 Finding Utility-maximizing Consumption Choice

If people do not have any intellectual picture of utility, the utility-maximizing consumption choice can be found by determining the marginal utility for every level of consumption. One can choose a starting point at random and compare the marginal utility gains and losses of moving to neighboring points  and finally seek out the preferred choice.

           Reference.

BCcampass <http://opentextbc.ca/principlesofeconomics/chapter/6-1-consumption-choices/