GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are
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zero
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Equal
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Minimum possible positive
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Maximum possible positive
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Explanation:
Detailed explanation-1: -The law of equi-marginal utility states that a consumer will attain equilibrium when the ratio of marginal utility of one commodity to its price is equal to the ratio of the marginal utility of another commodity to its price.
Detailed explanation-2: -Consumer equilibrium exists when the marginal utility per dollar of expenditure is the same for all goods and services.
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