The law of equi-marginal utility can be presented symbolically ___________.

M U_{a} / P_{a} = M U_{b} / P_{b} = M U_{c} / P_{c} = . . . . . . . . . . . . . . = M U_{n} / P_{n}

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M U_{a} / P_{a} < M U_{b} / P_{b} < M U_{c} / P_{c} < . . . . . . . . . . . . . . < M U_{n} / P_{n}

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M U_{a} / P_{a} > M U_{b} / P_{b} > M U_{c} / P_{c} > . . . . . . . . . . . . . . > M U_{n} / P_{n}

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None of above

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Solution

The correct option is A $M U_{a} / P_{a} = M U_{b} / P_{b} = M U_{c} / P_{c} = . . . . . . . . . . . . . . = M U_{n} / P_{n}$
The law of equi-marginal utility tells us the way how a consumer maximizes his total utility.The equi-marginal principle states that a consumer will be maximizing his total utility when he allocates his fixed money income in such a way that the utility derived from the last unit of money spent on each good is equal.
This condition for a consumer to maximize utility is usually written in the following form:
MUX/PX = MUY/PY

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Similar questions

In the following diagram $P_{A}, P_{B}, P_{C}, P_{D} a n d P_{E}$ be the pressure exerted by the liquid in the vessels A, B, C, D and E respectively. Find the correct order of pressure exerted by each vessel.

Q. If

A, B, C

are three events show that

P (A \cup B \cup C) = P (A) + P (B) + P (C) - P (A \cap B) - P (b \cap C) - P (C \cap A) + P (A \cap B \cap C)

Q. If

A, B, C

are three events, then show that

P (A \cup B \cup C) = P (A) + P (B) + P (C) - P (A \cap B) - P (B \cap C) - P (C \cap A) + P (A \cap B \cap C)

Q. If

P (A) = \frac{1}{2}, P (B) = \frac{1}{3}, P (C) = \frac{1}{2} a n d

P (A \cap B) = P (B \cap C) = P (C \cap A) = \frac{1}{4} a n d

P (A \cap B \cap C) = \frac{1}{8}

then find

P (A \cup B \cup C)

Q. If

P (A) = 0.7, P (B) = 0.55, P (C) = 0.5, P (A \cap B) = x, P (A \cap C) = 0.45, P (B \cap C) = 0.3

and

P (A \cap B \cap C) = 0.2

, then

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