Question

The law of equi-marginal utility was stated by _______.

• A. Adam Smith
• B. A. C. Pigou
• C. Alfred Marshall
• D. J. B. Say

Answer 1

The correct option is C Alfred Marshall

A consumer is in equilibrium position when marginal utility of money expenditure on each goods is the same. This situation holds the law of equi-marginal utility true. For example: if a consumer consumes oranges and apples, then the marginal utility derived from the last rupee spent on either apples or orange will be same.

This law of equi-marginal utility is stated by a British economist named Alfred Marshall.