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Commerce · Q556

Economics

Graduate and Post Graduate · Commerce · question 556

Q556

Consumer is said to be in equilibrium, maximising his total utility, when

A.
the marginal utilities of the two goods consumed are equal
B.
the proportions of the marginal utilities and respective prices are equal
Answer
C.
the consumer gets full satisfaction from the consumption
D.
the consumer feels satisfied with his expenditure on the various goods

Answer: Option B

Solution

Answer: Option B
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