The consumer optimum (for two goods, a and b) is reached when A) TU_a = TU_b. B) MU_a = MU_b. C) TU_a/P_a = TU_b/P_b. D) MU_a/P_a = MU_b/P_b.

Name: The consumer optimum (for two goods, a and b) is reached when A) TU a = TU b . B) MU a = MU b . C) TU a /P a = TU b /P b . D) MU a /P a = MU b /P b .
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The consumer optimum is achieved when the marginal utility per dollar spent on each good is equal, i.e., MU_a/P_a = MU_b/P_b.

The Consumer Optimum (For Two Goods, a and B) Is