In equilibrium,________.
A) the ratio of total benefits to price should be identical across all goods
B) the ratio of total benefits to income should be identical across all goods
C) the ratio of marginal benefits to price should be identical across all goods
D) the ratio of marginal benefits to income should be identical across all goods

Question

Quizplus · Accepted Answer

In equilibrium, consumers allocate their limited resources towards goods and services that provide the highest marginal benefit per unit of price. This is known as the principle of marginal utility maximization. Therefore, the ratio of marginal benefits to price should be equal across all accessible goods. This allows for efficient allocation of resources and maximizes consumer surplus.

In Equilibrium,________