According to marginal utility (MU) theory for two goods, X and Y, with different prices (P), when does a consumer reach maximum total utility (TU)?
- AM U X = M U Y
- BMU_X / P_X = MU_Y / P_Y
- CMU_Y / P_X = MU_X / P_Y
- DTUX = TUY
Economics 9708 · AS & A Level · Utility and rational consumer behaviour
According to marginal utility (MU) theory for two goods, X and Y, with different prices (P), when does a consumer reach maximum total utility (TU)?