Question

An equation that represents a utility-maximizing pattern of consumption of two goods, A and B, is ______________________.​

Answer 1

ANSWER ➡️ MUx/Px = MUy/Py, where MUx is the marginal utility derived from good x, Px is the price of good x, MUy is the marginal utility of good y and Py is the price of good y. Only when the ratio of MU/P is equal for all goods is a consumer maximizing his total utility

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Answer 2

Answer:

➡️ MUx/Px = MUy/Py, where MUx is the marginal utility derived from good x, Px is the price of good x, MUy is the marginal utility of good y and Py is the price of good y. Only when the ratio of MU/P is equal for all goods is a consumer maximizing his total utility

Explanation: