The law of equi-marginal utility states
A. $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{{\text{P}}_{\text{x}}}}} > \frac{{{\text{M}}{{\text{U}}_{\text{y}}}}}{{{{\text{P}}_{\text{y}}}}} > \frac{{{\text{M}}{{\text{U}}_{\text{z}}}}}{{{{\text{P}}_{\text{z}}}}} > {\text{M}}{{\text{U}}_{\text{m}}}$$
B. $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{{\text{P}}_{\text{x}}}}} = \frac{{{\text{M}}{{\text{U}}_{\text{y}}}}}{{{{\text{P}}_{\text{y}}}}} = \frac{{{\text{M}}{{\text{U}}_{\text{z}}}}}{{{{\text{P}}_{\text{z}}}}} = {\text{M}}{{\text{U}}_{\text{m}}}$$
C. $${\text{M}}{{\text{U}}_{\text{x}}}.{{\text{P}}_{\text{x}}} = {\text{M}}{{\text{U}}_{\text{y}}}.{{\text{P}}_{\text{y}}} = {\text{M}}{{\text{U}}_{\text{z}}}.{{\text{P}}_{\text{z}}}$$
D. $$\frac{{{\text{M}}{{\text{U}}_{\text{x}}}}}{{{{\text{P}}_{\text{x}}}}} < \frac{{{\text{M}}{{\text{U}}_{\text{y}}}}}{{{{\text{P}}_{\text{y}}}}} < \frac{{{\text{M}}{{\text{U}}_{\text{z}}}}}{{{{\text{P}}_{\text{z}}}}} < {\text{M}}{{\text{U}}_{\text{m}}}$$
Answer: Option B

Join The Discussion