Frank spends $75 on 10 magazines and 25 newspapers. The magazines cost $5 eachand the newspapers cost $2.50 each. Suppose that his MU from the final magazine is10 utils while his MU from the final newspaper is also 10 utils. According to theutility-maximizing rule, Frank should:reallocate spending from newspapers to magazines.none of the other answers are correct.reallocate spending from magazines to newspapers.be satisfied because he is already maximizing his total utility.

To derive the highest utility a consumer need to allocate the money income(M) in such a way that the…

reallocate spending from newspapers to magazines. none of the other answers are correct. reallocate spending from magazines to newspapers. be satisfied because he is already maximizing his total utility.

reallocate spending from newspapers to magazines. none of the other answers are correct. reallocate spending from magazines to newspapers. be satisfied because he is already maximizing his total utility.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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