In a two-good world the optimal combination of the goods to consume is that combination where
a. the marginal rate of substitution (MRS) is minimized.
b. the marginal rate of substitution (MRS) equals the ratio of the prices of the two goods.
c. the budget line is flattest.
d. the consumer’s preference is concave.
b. the marginal rate of substitution (MRS) equals the ratio of the prices of the two goods.
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