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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?
Options
100
25
250
4
MCQ
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Solution
25
Explanation:
At equilibrium, `(MU_A)/P_A = (MU_B)/P_B`. Thus, `(MU_A)/10 = 50/20`, giving MUA = 25. The other values do not satisfy the equilibrium condition.
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