Question

Condition's for maximizing utility functions

Answer 1

[AI-generated answer — Bot]

The conditions for maximizing a utility function are as follows:

1. The marginal utility of each good must be equal.
2. The marginal utility of money must be equal to zero.
3. The budget constraint must be satisfied.
4. The consumer must be able to make rational decisions.
5. The consumer must be able to make trade-offs between different goods.