An interior solution to a consumer's utility maximization problem implies which of the following:A. consuming optimal amounts of all goodsB. consuming a positive amount of one good and a negative amount of the other good.C. consuming less than an optimal amount of at least one good.D. consuming negative amounts of all goods.

Interior solution is the solution or a choice which is to be made through an agent and that could be characterized as an optimum which is located or situated at the tangency of two curves on the graph.

The utility maximization of the consumer states or defines that the consumer decide or take decision to allocate the incomes so that the last dollar amount which is spent on each and every product bought yields the same amount of the additional marginal utility.

Therefore, the interior solution to the utility maximization of the consumer problem states that the consumer consuming the optimal amounts of all the goods.

ayfat23 ayfat23 · Answer 2 · 2021-11-05T15:32:12+01:00

An interior solution that can be utilized in ending the problem of consumer's utility maximization as regards this question is A:. consuming optimal amounts of all goods

In microeconomics, the problem of utility maximization can be regarded as one that is been faced by consumers on how they can spend their money and at the same time maximizing their utility.

It can be regarded as optimal decision problem however it helps in making decisions on income allocation by consumer.

This problem can be faced through the optimal consumption of amounts of all goods

Therefore, option A is correct.

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