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What does the "Law of Equi-marginal utility" say? |
It states that the consumer will be in equilibrium when the utility derived from the last rupee spent is equal on both the product. It states that the consumer will be in equilibrium when the utility derived from his monthly income is equal to the prices of both the product. It states that the consumer will be in equilibrium when the utility derived from the money spent is not equal on both the product. none of these |
It states that the consumer will be in equilibrium when the utility derived from the last rupee spent is equal on both the product. |
The correct answer is Option 1: It states that the consumer will be in equilibrium when the utility derived from the last rupee spent is equal on both the product. Law of Equi-Marginal Utility explains the relation between the consumption of two or more products and what combination of consumption these products will give optimum satisfaction. It states that the consumer will be in equilibrium when the utility derived from the last rupee spent is equal on both the product. |
