In equilibrium, the ratio of marginal utilities for any two goods will be the same for all consumers who purchase positive quantities of both goods.

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This statement is a basic assumption of consumer theory and is known as the principle of equal marginal utility. It means that consumers allocate their budget to maximize the ratio of marginal utility to price for all goods they consume. If the ratio for one good was greater for one consumer compared to another, then the consumer with the higher ratio would increase their consumption of that good until the ratio was the same as the other consumer.

In Equilibrium, the Ratio of Marginal Utilities for Any Two