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The Tangency Condition for the Optimal Choice for a Consumer MRSx,y=Py/Px\mathrm { MRS } _ { x , y } = P _ { y } / P _ { x }

Question 35

Multiple Choice

The tangency condition for the optimal choice for a consumer is given by:


A) MRSx,y=Py/Px\mathrm { MRS } _ { x , y } = P _ { y } / P _ { x }
B) MUx/MUy=1\mathrm { MU } _ { x } / \mathrm { MU } _ { y } = 1
C) MRSx,y=Px/Py\mathrm { MRS } _ { x , y } = P _ { x } / P _ { y }
D) MUx/MUy=Py/Px\mathrm { MU } _ { x } / \mathrm { MU } _ { y } = P _ { y } / P _ { x }

Correct Answer:

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