Economics JAMB

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.

Sunday

Share
Published by
Sunday
Tags: economics

Recent Posts

OOU JUPEB Admission For Agricultural Extension

Do you want to study Agricultural Extension in OOU? Before you apply for the OOU…

10 months ago

OOU JUPEB Admission For Agricultural Economics

Do you want to study Agricultural Economics in OOU? Before you apply for the OOU…

10 months ago

OOU JUPEB Admission For Cooperative and Business Management

Do you want to study Cooperative and Business Management in OOU? Before you apply for…

10 months ago

OOU JUPEB Admission For Home and Hotel Management

Do you want to study Home and Hotel Management in OOU? Before you apply for…

10 months ago

OOU JUPEB Admission For Animal Production

Do you want to study Animal Production in OOU? Before you apply for the OOU…

10 months ago

OOU JUPEB Admission For Crop Production

Do you want to study Crop Production in OOU? Before you apply for the OOU…

10 months ago