(idea) by polygnwnd Tue Oct 02 2001 at 21:09:32

In economics, the consumer maximises utility when the marginal utility (MU) per unit of money spent (P) is the same for all goods subject to the consumer's indifference curve. Thus for two products (A and B):


MUA/ MUB = PA/PB

Alternatively one could view consumer equilibrium as an equal ratio of marginal utility to price for all goods:

MUA/ PA = MUB/ PB
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