Assume that Siri is consuming the utility-maximizing quantities of pork and chicken.We can conclude that:
A)the price of pork equals the price of chicken.
B)the marginal utility of pork equals the marginal utility of chicken.
C)the ratio of the marginal utility to price is the same for pork as it is for chicken.
D)Siri is consuming the same amount of pork and chicken.

Question

Quizplus · Accepted Answer

The condition for utility maximization in the consumption of two goods, such as pork and chicken, is that the ratio of the marginal utility (MU) to the price of each good is equal. This ensures that the consumer is allocating their budget in a way that maximizes their satisfaction, by equalizing the marginal utility per dollar spent on each good. Choices A, B, and D do not necessarily have to be true for utility maximization.

Assume That Siri Is Consuming the Utility-Maximizing Quantities of Pork