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

Economics JAMB 2015

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

  • MUX = MUA
  • MUX = PX checkmark
  • PX = X
  • 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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