If you purchase a gift worth $30 for your sister, but your sister would be willing to pay only $25 if she bought the item for herself, then the Multiple Cholce total utility of the gift is $55. total utility of the glift is $5. marginal utility of the gift is $5. loss of value in the gift is $5.
If you purchase a gift worth $30 for your sister, but your sister would be willing to pay only $25 if she bought the item for herself, then the Multiple Cholce total utility of the gift is $55. total utility of the glift is $5. marginal utility of the gift is $5. loss of value in the gift is $5.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If you purchase a gift worth $30 for your sister, but your sister would be willing to pay only $25 if she bought the item for herself, then the
Multiple Cholce
total utility of the gift is $55.
total utility of the glift is $5.
marginal utility of the gift is $5.
loss of value in the gift is $5.
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