In a situation where Mux represent the marginal utility of product X while Px represent the price respectively. Utility can be maximized when?

A. MUX = MUA
B. MUX = PX
C. PX = X
D. PX = PY

Correct Answer:

Option B – MUX = PX

Explanation

A consumer utility is maximized when the marginal utility per amount spent on a product is equal to the price.