In the case of a free good, the consumer will be in equilibrium when:

by
Question:

In the case of a free good, the consumer will be in equilibrium when:

A.

MU = P

B.

MU = 0

C.

TU = 0

D.

TU =1

Answer» b. MU = 0

Note: The above multiple-choice question is for all general and Competitive Exams in India.