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If John Consumes Only Two Goods,A and B,and He Is

Question 111

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

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