Rationality is a normative concept. Indicate whether the ...

[mp14]

Rationality is a normative concept.
  Indicate whether the statement is true or false

Question 2

Consumers should allocate their income so that the marginal utility associated with the:
 a. first dollar spent is equal for all goods.
  b. last dollar spent is equal for all goods.
  c. last dollar spent is lower for high-priced items than for low-priced items.
  d. first dollar spent is greater for high-priced items than for low-priced items.
  e. first dollar spent is less for high-priced items than for low-priced items.

[dominiqueenicolee]

Answer to Question 1

F

Answer to Question 2

b