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Question
Suppose that a consumer is currently at an optimum when consuming goods A and B. Which of the following must be true?
A) The total utility from A is equal to the total utility from B.
B) The price of A is equal to the price of B.
C) The marginal utility of A is equal to the marginal utility of B.
D) The marginal utility to price ratio of A is equal to the marginal utility to price ratio of B.
Answer
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