Question

A consumer in consumption of two commodities A and B is at equilibrium. The prices of A and B are ₹ 10 & ₹ 20 respectively & the marginal utility of product B is 50. What will be the marginal utility of product A?

पर्याय

• 100

• 25

• 250

• 4

Answer 1

25

Explanation:

At equilibrium, `(MU_A)/P_A = (MU_B)/P_B`. Thus, `(MU_A)/10 = 50/20`, giving MU_A = 25. The other values do not satisfy the equilibrium condition.