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प्रश्न
Explain the following function of money:
Maximisation of utility
टीपा लिहा
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उत्तर
- As we know a rational consumer wants to maximise his utility (or satisfaction) while purchasing various goods and services.
- Consumer will be able to maximise his total utility, if the ratios of marginal utilities of different commodities are equal to the price ratio of different goods.
- For equalising the marginal utilities, money plays an important role, because prices of all commodities are expressed in terms of money.
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