Business Economics

1: Assertion (A). "Utility will be maximised when the marginal unit of expenditure in each direction brings the same incremental utility. Reason (R). A consumer will try to maximise his utility.

 

A.
Both (A) and (R) are true and (R) is correct explanation of (A).
B.
Both (A) and (R) are true but (R) is not correct explanation of (A).
C.

Both (A) and (R) are false.

D.

(A) is true but (R) is false.

 

Answer : B

Explanation :

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Option: A

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