If a consumer is maximizing her total utility by consuming good A and good B, what must her marginal rate of substitution, MUA/MUB, be equal to?a.PB/PAO b.РА/PBO c. 1O d.Her money income

MRS refers to the rate at which a consumer exchanges one good with other .

Answered: If a consumer is maximizing her total…

If a consumer is maximizing her total utility by consuming good A and good B, what must her marqinal rate of substitution, MUA/MUB, be equal to? PB/PA Ob. РА/PB d. Her money income

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 8RQ: Is it possible for total utility to increase while marginal utility diminishes? Explain.

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Question

If a consumer is maximizing her total utility by consuming good A and good B, what must her marginal rate of substitution, MUA/MUB, be equal to?
a.
PB/PA
O b.
РА/PB
O c. 1
O d.
Her money income

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