Question

A consumer is in equilibrium when marginal utilities from two goods are
a. Minimum
b. Maximum
c. Equal
d. Increasing

Answer 1

A consumer is in equilibrium when the marginal utilities from two goods are equal.

A consumer will attain the maximum equilibrium at the point where the marginal utility of a product is divided by the marginal utility of a rupee.

The consumer tends to have a decreasing marginal utility if he keeps ion consuming the same product all the time.

A consumer reaches the maximum utility when the need derived from a product is less than the price.