Figure 4.7.2
-Refer to Figure 4.7.2 above. Which of the expressions in the figure represents the equal marginal principle?

Question

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The equal marginal principle states that the marginal utility per dollar spent on each good should be equal. In the figure, expression A represents the marginal utility per dollar spent on good X, and expression B represents the marginal utility per dollar spent on good Y. Since the two expressions are equal, the equal marginal principle is satisfied.

Figure 4.7.2 -Refer to Figure 4.7.2 Above. Which of the Expressions in Expressions