oo AT&T; LTE 8:27 PM Assignments Micro Assignment Detail Submission Grade Micro
ID: 1115140 • Letter: O
Question
oo AT&T; LTE 8:27 PM Assignments Micro Assignment Detail Submission Grade Micro Assignment Micro Assignment Due:Dec 1, 2017, 5:00 PM Micro - ECON-2302 Assignment Copy Select All Look Up Share... nswer the questions below in essay form as complete and concise as possible Critical thinking has to be applied in answering the questions with relevant examples for you to demonstrate your understanding of the question Complete assignment utilizing Microsoft Word. Do not retype the question. Make sure to only type the question # and the answer that corresponds with the question. Once you have completed Courses Calendar To Do Notifications MessagesExplanation / Answer
The total utility of maximised when marginal utility per dollar from a good is equal to another good. This is because consumers fixes his/her budget and allocate the quantity of each good such that their marginal utility is equal. But is this doesn't happen and the person starts consuming one more than the other than the marginal utility of one being more consumed would eventually start to decrease due to the law of DIMINISHING MARGINAL UTILITY, hence the total utility won't be maximised.
Ideally,
Marginal utility of A/ price of good A = marginal utility of good B/ price of good B.
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