Question

in choosing between burger and shirts consumers increase their purchases of each until

(a) the marginal utility from the last rupee spent on one is the same as on the another
(b) the marginal utility from the last rupee of of burger is the same as from the last shirt
(c) the total utility from one is the same as from the other
(d)none of the above

Answer 1

Hi!!

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Option (A)

The marginal utility from the last rupee spent on one is the same as on the another

Justification :

• Marginal utility is an additional satisfaction of consumers .

• It is gains from consuming one more unit of goods and services .

• As in this  case Consumers  have two choice burger and Shirts if they have additional satisfaction of their last purchases on  any one choice is similar to other .

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Thanks !!!

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Answer 2

(a) the marginal utility from the last rupee spent on one is same as on the another.