The equimarginal principle is satisfied when we spend the same amount of money on the police,courts,and prisons.

Question

Quizplus · Accepted Answer

The equimarginal principle states that we should allocate our resources in a way that ensures that the marginal utility per dollar is equal across all goods or services purchased. Therefore, it is not necessary to spend the same amount of money on the police, courts, and prisons to satisfy this principle. The optimal allocation of resources would depend on the marginal utility of each good or service relative to its cost.

The Equimarginal Principle Is Satisfied When We Spend the Same