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Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of ) MUj Units of K MUK 1 56 1 32 48 28 3 32 24 4 24 4 20 20 5 12 6. 16 6 10 7 12 7 8 If the consumer has money income of $26 and the prices of J and K are $8 and $2 respectively, the consumer will maximize her utility by purchasing

Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of ) MUj Units of K MUK 1 56 1 32 48 28 3 32 24 4 24 4 20 20 5 12 6. 16 6 10 7 12 7 8 If the consumer has money income of $26 and the prices of J and K are $8 and $2 respectively, the consumer will maximize her utility by purchasing

Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 8SQP
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Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUK 1 56 32 2 48 2 28 3 32 3 24 4. 24 4 20 5 20 5 12 6. 16 6 10 12 8 If the consumer has money income of $26 and the prices of J and K are $8 and $2 respectively, the consumer will maximize her utility by purchasing Multiple Choice 1 units of J and 7 units of K. 3 units of J and 1 units of K. 2 units of J and 5 units of K. 3 units of J and 3 units of K.
Transcribed Image Text:Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUK 1 56 32 2 48 2 28 3 32 3 24 4. 24 4 20 5 20 5 12 6. 16 6 10 12 8 If the consumer has money income of $26 and the prices of J and K are $8 and $2 respectively, the consumer will maximize her utility by purchasing Multiple Choice 1 units of J and 7 units of K. 3 units of J and 1 units of K. 2 units of J and 5 units of K. 3 units of J and 3 units of K.
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