Assume that Virgil purchases a combination of products Y and Z such that, after he is done spending his entire budget, MUy / Py = 25 and MUz / Pz = 25. Based on the equal marginal principle, Virgil

A. should have purchased more Y and more Z.
B. should have purchased less Y and more Z.
C. is maximizing his total utility.
D. should have purchased more Y and less Z.

Answer: C

Economics

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