2. Mrs. Simpson buys loaves of bread and quarts of milk each week at prices of $1...
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2. Mrs. Simpson buys loaves of bread and quarts of milk each week at prices of $1 and 80 cents, respectively. At present she is buying these products in amounts such that the marginal utilities from the last units purchased of the two products are 80 and 70 utils, respectively. Is she buying the utilitymaximizing combination of bread and milk? If not, how should she reallocate her expenditures between the two goods? LO2
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Economics Principles Problems And Policies
ISBN: 9780073511443
19th Edition
Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn
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