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Commerce · Q171

Economics

Graduate and Post Graduate · Commerce · question 171

Q171

A consumer is in equilibrium when marginal utilities are

A.
Minimum
B.
Highest
C.
Equal
Answer
D.
Increasing

Answer: Option C

Solution

Answer: Option C
Solution:
A consumer is in equilibrium when marginal utilities are equal. A consumer is in equilibrium when he derives maximum satisfaction from the goods and is in no position to rearrange his purchases.