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Question
A consumer optimum is characterized by
A) the marginal rate of substitution of one good divided by its price equal to the marginal rate of substitution of the other good divided by its price.
B) the marginal rate of substitution equal to unity.
C) the marginal rate of substitution equal to the ratio of the prices of the two goods.
D) the marginal rate of substitution divided by the price ratio of the two goods equal to the income of the consumer.
Answer
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