Question

State the law of equi marginal utility​

Answer 1

The law of equi-marginal utility states that the consumer will distribute his money income between the goods in such a way that the utility derived from the last rupee spend on each good is equal. In other words, consumer is in equilibrium position when marginal utility of money expenditure on each goods is the same.

Answer 2

The law of equimarginal returnstates that profit from a limited amount of variable input is maximized when that input is used in such as way that marginal returnfrom that input is equal in all the enterprises.