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If John Consumes Only Two Goods, a and B, and He

Question 50

Multiple Choice

If John consumes only two goods, A and B, and he is maximizing his utility subject to his budget constraint,


A) MUA/MUB equals the ratio of the price of A to the price of B.
B) MUA/MUB equals 1.
C) MUA/MUB equals the ratio of the total utility of A to the total utility of B.
D) MUA/MUB is at a maximum.
E) MUA/MUB equals zero.

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