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THE EQUI-MARGINAL PRINCIPLE For the situation of multiple products, ideal utilization point can be shown up at by utilizing the equimarginal rule.
This expresses that an individual will determine a most extreme degree of TU from consuming a specific heap of products when the utility got from the keep going dollar spent on every great is something very similar: MUa = MUb = MUc … … … … … . Dad Pb PC.
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Illustration 10 CONSUMER BEHAVIOR: CONSUMPTION SIDE ANALYSIS (CONTINUED)
SUPPLY SIDE AND DEMAND SIDE VIEWS ON THE VALUE OF GOOD According to the stock side view on the worth of a decent, the worth of a still up in the air by the work content that had gone into creating great, either straightforwardly or by implication. CS204 MIDTERM PAST PAPER
As per the interest side view on the worth of a decent, the worth of a not entirely set in stone by its minimal utility. This settled the precious stone water oddity, for example why precious stones have such an exorbitant cost while water (significantly more fundamental forever) sells so economically. CS204 MIDTERM PAST PAPER