You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5. Marginal utility for them is as follows: Pencil: 1. 8 2. 7.8 3. 6.8 4. 6.3 Pens: 1. 7 2. 6.1 3. 5.2 4. 4 How many of each item would you get to maximize utility?
You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5. Marginal utility for them is as follows: Pencil: 1. 8 2. 7.8 3. 6.8 4. 6.3 Pens: 1. 7 2. 6.1 3. 5.2 4. 4 How many of each item would you get to maximize utility?
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 1P
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Question
You can buy pencils and pens. Each pencil costs $7.5 and each pen costs $5.
Pencil:
1. 8
2. 7.8
3. 6.8
4. 6.3
Pens:
1. 7
2. 6.1
3. 5.2
4. 4
How many of each item would you get to maximize utility?
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