The concept of 'Consumer Equilibrium' under utility analysis is achieved when:
A. Total utility is zero
B. Marginal utility is maximum
C. MU of a commodity is equal to its price
D. Price is zero
Answer: Option C
Solution (By JKSSB Mock Tests)
A consumer is in equilibrium when the marginal utility derived from a commodity equals its price (or MU per unit of money is equalised across commodities).
Explanation:
The informal sector is characterised by easy entry, small-scale operations, labour-intensive technology, lack of formal contracts and limited regulation.
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