If the marginal value of 1 bottle of shampoo is 4 soap bars,then
A) the absolute price of shampoo is 4 times the absolute price of a soap bar.
B) trading away 1 bottle of shampoo for 4 bars of soap will not affect the consumer's level of satisfaction.
C) the consumer's optimum contains 4 times as many bars of soap as bottles of shampoo.
D) shampoo provides 4 times as much satisfaction to the consumer as does soap.

Question

Quizplus · Accepted Answer

The marginal value of 1 bottle of shampoo being equivalent to 4 soap bars indicates that the consumer views these quantities as providing the same level of utility or satisfaction, hence trading one for the other does not change their overall satisfaction.

If the Marginal Value of 1 Bottle of Shampoo Is