An Optimizing Consumer Has to Choose Between Two Goods: Good

question 95

Multiple Choice

An optimizing consumer has to choose between two goods: Good A priced at PA and Good B priced at PB.Given that MBA is the marginal benefit from consuming Good A and MBB is the marginal benefit from consuming Good B,the consumer's well-being will be maximized at the point where ________.

• A) MBA = MBB
• B) MBA/PB = MBB/PA
• C) MBA/PA = MBB/PB
• D) MBA = MBB/PB

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