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As a Consumer Allocates Income Between Good a and Good

Question 23

Multiple Choice

As a consumer allocates income between good A and good B, total utility is maximized when


A) the marginal utility of A = the marginal utility of B
B) the marginal utility of A = the marginal utility of B = 0
C) the price of A = price of B
D) marginal utility of A/price of A = marginal utility of B/price of B = 0
E) marginal utility of A/price of A = marginal utility of B/price of B

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