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Commerce Short Question | Gkseries

Q.

Consumer is said to be in equilibrium, maximizing his total utility, when

[A] the marginal utilities of the two goods consumed are equal
[B] the proportions of the marginal utilities and respective prices are equal
[C] the consumer gets full satisfaction from the consumption
[D] the consumer feels satisfied with his expenditure on the various goods
Answer & Explanation

Answer: the proportions of the marginal utilities and respective prices are equal

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