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In a situation where Mux represent the marginal utility of product X while Px re...


Question

In a situation where Mux represent the marginal utility of product X while Px represent the price respectively. Utility can be maximized when

Options

A)
MUX = MUA
B)
MUX = PX
C)
PX = X
D)
PX = PY

The correct answer is B.

Explanation:

A consumer utility is maximized when the marginal utility per amount spent on a product is equal to the price.

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