A consumer maximizes utility, given her income, when she chooses a consumption bundle where:?

Question

a) the marginal utility of each good is equal.

b) the highest indifference curve is tangent to the budget line.

c) the marginal rate of substitution is highest.

d) the marginal utility of each good is highest.

Answer 1

b) the highest indifference curve is tangent to the budget line.

That means they are getting the most utility available with their budget