describing how the rational spending rule can help you maximize utility in your own life. Describe two goods, services, or activities that you currently enjoy but your marginal utility per dollar (or per unit of time) for the two goods is not equal. Use the rational spending rule to describe how you can re-arrange your spending (or time) in order to maximize your utility. You can simply state that you should spend more money (or time) on one thing and less money (or time) on the other. Describe what will happen to your marginal utility for each good (or activity) after you reallocate your spending (or time).

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Answer The rational spending rule is a concept in economics that suggests allocating your resources ... View the full answer