Question
A util is a unit of utility.For a particular consumer, the ratio of marginal utility to price for product A is 10 utils per dollar,
A util is a unit of utility.For a particular consumer, the ratio of marginal utility to price for product A is 10 utils per dollar, while the ratio of marginal utility to price for product B is 20 utils per dollar. In order to maximize her utility, should this consumer buy more A or more B?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
