I don’t really understand this…
Steps:
Calculate MU/P
Compare MUx with MUy
Choose highest MU
Continue until you spend all of your money


I dont really understand this Steps Calculate MUP Compare MUx with MUy Choose highest MU Continue until you spend all of your money class=

Respuesta :

Answer:

In the real world, a consumer may purchase more then one commodity. Let us assume that a consumer purchases two goods X and Y. How does a consumer spend his fixed money income in purchasing two goods so as to maximize his total utility? The law of equi­-marginal utility tells us the way how a consumer maximizes his total utilit