Examlex
If a consumer is faced with a choice of products A, B, C, ..., and has a given money income, the consumer's utility will be maximized when
MUa/Pa
A ratio used in economics to represent the marginal utility of a good (MUa) divided by its price (Pa), indicating the additional satisfaction gained per unit of spending.
MUb/Pb
A concept from economics that compares the additional utility gained from consuming one more unit of a good (MUb) to its price (Pb), often used in optimal consumption analysis.
Maximizing Utility
The economic principle that individuals seek to achieve the highest level of satisfaction possible from their consumption of goods and services, given their income and the prices of those goods and services.
Marginal Rate
The rate at which one variable changes with respect to a minute increase in another variable, often used in the context of marginal tax rates or marginal rates of substitution in economics.
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