Microeconomics
Solutions
Microeconomics
Explain why consumer equilibrium is the same under marginal utility analysis or indifference curve analysis.
Explain about the same consumer equilibrium under marginal utility analysis or indifference curve analysis.
According to the utility maximizing rule, in a two-good world, the consumer equilibrium occurs at the point where the marginal utility-price ratio for one of the goods is equal to the ratio of the other good. The indifference curves show the combinations of two commodities that yield the same level of satisfaction to the consumer...
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