Bang for the buck of various items

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If consumers are rational, they will attempt to equate the "bang for the buck" of various items that contribute to their satisfaction within the constraints of some budget. That is, they will seek to...

maximize their marginal utility

Equate the ration of ( price / marginal utility ) for each item in their budget.

equate the ratios of (total utility / price ) for each item in their budget

maximize their total utility

Reference no: EM131160428

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