Question: If a consumer is maximizing her total utility by consuming good A and good B, what must her marginal rate of substitution, MUA/MUB, be equal

If a consumer is maximizing her total utility by consuming good A and good B, what must her marginal rate of substitution, MUA/MUB, be equal to?

a. PB/PA

b. Her money income

c. 1

d. PA/PB

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

If a consumer is maximizing her total utility by consuming good A and good B, what must her marginal rate of substitution, MUA/MUB, be equal to?

Q:

If a consumer is maximizing her total utility by consuming good A and good B, what must her marginal rate of substitution, MUA/MUB, be equal to?

Q:

1. Sara likes to Play-station games (P) and Cinema (C). The cost of Play-Station games is birr 2 and that of Cinema is birr 4. Sara's monthly budget for these item is birr 100 and her utility...

Q:

1. Sara likes to Play-station games (P) and Cinema (C). The cost of Play-Station games is birr 2 and that of Cinema is birr 4. Sara's monthly budget for these item is birr 100 and her utility...

Q:

1. Sara likes to Play-station games (P) and Cinema (C). The cost of Play-Station games is birr 2 and that of Cinema is birr 4. Sara's monthly budget for these item is birr 100 and her utility...

Q:

Explain the following. 1. In microeconomics the term utility references the: i. relative scarcity of a good or service ii. usefulness of a good or service iii. satisfaction derived from consumption...

Q:

True or False, then explain why. Thank you in advance. TOPIC: Price Elasticity of Supply and Consumer Behavior 1. The marginal rate of substitution diminishes along an indifference curve. 2. Customer...

Q:

Part 1. The company sells higher-end custom-design socks in three-sock sets (rather than two). The company operates from a small packaging and distribution facility in Richmond, CA from which it...

Q:

Question 1. QUESTION 1 Suppose that the quantity supplied of pizza exceeds the quantity demanded for pizza. We would expect that: the price of pizza will increase. the price of pizza will decrease....

Q:

Please just tell me the correct options for these 5 subquestions of the same ONE question. You may choose not to give an explanantion: (1A) What are the main differences between traditional economics...

Q:

What is their EBITDA as a percentage of Revenue for years ending 2002; 2021; 2022? Annual Data | Millions of US $ except per share data Revenue Cost Of Goods Sold Gross Profit Research And...

Q:

What is the difference, if any, between a joint venture and a strategic alliance?

Q:

Which of the following is an appropriate objective of a consumer loan policy? set annual lending goals for lenders establish a formal loan review program design a business model for lenders...

Q:

. In other words, Scholar X argues, Instead of "In other words, you might try variations like the following: Essentially, X argues X's point, succinctly put, is that Plainly put, Following...

Q:

4. In what way will relationships in a system influence what is reported?

Q:

3. Mention three examples where you distorted information that you had taken from your memory and where others made you aware of the fact that you had distorted the information. Did it create a...

Q:

4. Think of two units of information you have received during the course of the day. Connect these two units of information and try to create completely new information that did not exist in the...