Friday, December 23, 2011

Explain why the marginal benefit per dollar spent should be the same for all goods or services you consume.?

i don't understand why you want the marginal benefit the same on everything. i understand that the optimal choice is when the ratios of the marginal benefits over marginal costs are equal (according to the equimargin principle) but the ration won't the same for every good and service, will it?

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