Multiple Choice
Faced with two goods to buy, good 1 and good 2, a utility-maximizing individual will buy according to which of the following statements?
A) price of good 1 = price of good 2
B) MU of good 1 = MU of good 2
C) price of good 1 divided by MU of good 2 = price of good 2 divided by MU of good 1
D) MU of good 1 divided by price of good 1 = MU of good 2 divided by price of good 2
Correct Answer:
Verified
Correct Answer:
Verified
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