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A consumer purchasing a commodity X will maximize his satisfaction if

Economics
WAEC 2011

A consumer purchasing a commodity X will maximize his satisfaction if

  • A. Px = MUx
  • B. Px ≥ MUx
  • C. Px > MUx
  • D. Px < MUx
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Correct Answer: Option A
Explanation

Utility is maximized When price is equal to marginal utility.

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