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Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products
Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are, respectively, $18, $6, $4, and $24 and that Ricardo has an income of $106. Column 1 Column 2 Column 3 Column 4 Column 5 Number of Units of A MU Units of B MU Units of C MU Units of D MU Dollars MU Saved 1 72 1 24 15 1 36 5 2 54 2 15 2 12 30 2 4 W N 3 45 3 12 w 9 24 3 3 4 36 4 9 4 7 4 18 4 2 27 5 7 5 5 5 13 5 1 6 18 6 5 4 6 7 6 0.5 15 7 2 7 3.5 7 4 7 0.25 8 12 8 1 8 3 8 2 8 0.125 Instructions: Enter your answers as a whole number. a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? units of A units of B units of C units of D b. How many dollars will Ricardo choose to save? $ c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule. ($ 1+ $0 + $1 + $ 1 x ]+ $ ) = $
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