Multiple Choice
Faced with two goods to buy,diamonds and silver,a utility-maximizing individual will buy according to which rule?
A) The price of diamonds equals the price of silver.
B) The marginal utility of diamonds equals the marginal utility of silver.
C) The price of diamonds divided by the marginal utility of silver equals the price of silver divided by the marginal utility of diamonds.
D) The marginal utility of diamonds divided by the price of diamonds equals the marginal utility of silver divided by the price of silver.
Correct Answer:
Verified
Correct Answer:
Verified
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