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Economics

What is the optimal consumption bundle and marginal utility per dollar?

The optimal consumption bundle is the consumption bundle which maximizes a consumer's total utility specified his or her budget constraint.

The marginal utility per dollar spent onto a good or service is the additional utility through spending one more dollar on which good or service.

Marginal utility per dollar spent onto a good = marginal utility of one unit of the good/price of one unit of the good = MU_good/P_good

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9581648

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