for two commodities A and B, MA and MB are the respective marginal utilities while...
ECONOMICS
WAEC 1997
for two commodities A and B, MA and MB are the respective marginal utilities while PA and PB are the respective prices. Marginal utilities of the commodities are maximized when
- A. MA/PA = MB/PB
- B. MA/PA > MB/PB
- C. MA/PA< MB/PB
- D. PA/MA< PB/MB
Correct Answer: A. MA/PA = MB/PB
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