At a consumer's optimal choice, the consumer chooses the combination of goods such that the ratio of the marginal utilities equals the ratio of the prices.

Question

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At a consumer's optimal choice, the consumer maximizes utility given their budget constraint, leading to the condition where the ratio of the marginal utilities of two goods equals the ratio of their prices. This ensures the most efficient allocation of the consumer's budget to maximize satisfaction.

At a Consumer's Optimal Choice, the Consumer Chooses the Combination