A consumer maximises her total utility from a bundle of goods when her marginal utility from each good is equal.

Name: A consumer maximises her total utility from a bundle of goods when her marginal utility from each good is equal.
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Question

Quizplus · Accepted Answer

A consumer maximizes her total utility from a bundle of goods when the ratio of the marginal utility to the price of each good is equal across all goods, not necessarily when the marginal utility from each good is equal.

A Consumer Maximises Her Total Utility from a Bundle of Goods