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Answer to Question #64006 in Other Economics for Faisal

Question #64006
Which of the following statements is true?
a) If a consumer is satisfying the equimarginal rule, then she must be consuming the bundle of goods that maximizes her total utility
b) The equimarginal rule states how a consumer will allocate her money income among goods to maximize her total utility
c) The equimarginal rule is a more rigorous restatement of the rationality assumption
d) All of the above
Please tell which is right answer and why?
Expert's answer
The true statements is that the equimarginal rule is a more rigorous restatement of the rationality assumption, because total utility maximization is not the main wish of the consumer.
So, the correct answer is c.

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