What is the law of equi-marginal utility?

Economics Marginal Utility Questions



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What is the law of equi-marginal utility?

The law of equi-marginal utility states that a rational consumer will allocate their limited income or resources among different goods or services in such a way that the marginal utility derived from the last unit of each good or service is equal. In other words, the consumer will maximize their total utility by spending their money on different goods in a way that the additional satisfaction gained from consuming one more unit of each good is the same.