Assuming Only Two Goods X and Y, If MU_X\P_X =

question 165

Multiple Choice

Assuming only two goods X and Y, if MU_X\P_X = MU_Y\P_Y, then the consumer

• A)is not in equilibrium.
• B)cannot be made better off by redirecting his purchases.
• C)is deriving the same marginal utility on both goods.
• D)has no incentive to consume either good X or good Y.

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