What Is The Rule Relating The Ratio Of Marginal Utility To Prices Of Two Goods At The Optimal Choice?
What Is The Rule Relating The Ratio Of Marginal Utility To Prices Of Two Goods At The Optimal Choice? At the optimal choice, the ratio of utilities between two goods should be 1. Otherwise, further utility could be gained by substituting one good for the other. When the ratios of the marginal utility to the