(Answered) Consumers tend to equate total utilities per dollar spent.TrueFalseConsumers tend to equate total…

➤ When does using total utility per dollar give the wrong decision?
Total utility per dollar fails when marginal utility varies with quantity, which is almost always. Under diminishing marginal utility, extra units add less satisfaction, so total utility per dollar can increase while marginal benefit declines. The criterion breaks down for discrete goods, changing prices, or when budget constraints and substitution effects matter.