Which of the following represents a consumer's optimum? A)MU_x/MU_y = P_y/P_x B)MU_x/P_y = MU_y/P_x C)MU_x/P_x = MU_y/P_y D)MU_y/MU_x = P_x/P_y

Name: Which of the following represents a consumer's optimum? A)MU x /MU y = P y /P x B)MU x /P y = MU y /P x C)MU x /P x = MU y /P y D)MU y /MU x = P x /P y
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Question

Quizplus · Accepted Answer

A consumer's optimum is achieved when the marginal utility per dollar spent on each good is equal, which is represented by MU_x/P_x = MU_y/P_y.

Which of the Following Represents a Consumer's Optimum