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I don’t really understand this…

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I don’t really understand this… Steps: Calculate MU/P Compare MUx with MUy Choose-example-1

1 Answer

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Answer:

In the real world, a consumer may purchase more then one commodity. Let us assume that a consumer purchases two goods X and Y. How does a consumer spend his fixed money income in purchasing two goods so as to maximize his total utility? The law of equi­-marginal utility tells us the way how a consumer maximizes his total utilit

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