It's determined by the ratio of the marginal utility of X to the marginal utility of Y because those are the, you know, when you give up a unit of X you're losing the marginal utility of X.
And be sure to clock the reference to the "diminished marginal utility of money".
If you get a little bit more of Y you're gaining the marginal utility of Y.
If you get a little bit less X you're losing the marginal utility of X.
When you're getting a unit of Y you're getting the marginal utility of Y.
"The marginal utility of adding one country to that 171 list is getting less and less," he said.
By studying progressively smaller sets of the kernel lexicon we can better understand the marginal utility of the core words.
But if you plug in XA = 77 and XB = 7, DXB, DXA is -1 you just get 23 - 23 = 0, because the marginal utility of A is equal to the marginal utility of B at equilibrium.
Economists categorize individuals as more or less risk-tolerant based on the marginal utility of income.
So the final equation is you're optimizing if and only if the marginal utility of i of X divided by the marginal utility of i of Y equals PX over PY.
And the last equation is the same thing for j, the marginal utility of j of X divided by the marginal utility of Y has to equal PX over PY.
