1.1. In Table 10-3 you can see that marginal utility per dollar spent on clams and marginal...

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1.1. In Table 10-3 you can see that marginal utility per dollar spent on clams and marginal utility per dollar spent on potatoes are equal when Sammy increases his consumption of clams from 3 pounds to 4 pounds and his consumption of potatoes from 9 pounds to 10 pounds. Explain why this is not Sammy’s optimal consumption bundle. Illustrate your answer using the budget line in Figure 10-3.

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Economics

ISBN: 978-0716771586

2nd Edition

Authors: Paul Krugman ,Robin Wells

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