Final answer:
The utility-maximizing rule requires that the marginal utility of product A divided by the price of A should be equal to the marginal utility of product B divided by the price of B. This ensures the consumer is maximizing satisfaction from their budget.
Step-by-step explanation:
The utility-maximizing rule states that for a consumer to achieve maximum satisfaction from their purchases within their budget, the ratio of the marginal utility of product A to its price should be equal to the ratio of the marginal utility of product B to its price.
This implies that the consumer should allocate their budget between products in such a way that the last dollar spent on each product provides the same level of marginal utility.
In mathematical terms, this rule can be expressed as:
MUA / PA = MUB / PB
Therefore, the answer to the student's question is: The marginal utility of product A divided by the price of product A should be equal to the marginal utility of product B divided by the price of product B at the utility-maximizing point.