Question
If the marginal utility per the price of Good A is $2.50, and the marginal utility per the price for Good B is $2.40, what
If the marginal utility per the price of Good A is $2.50, and the marginal utility per the price for Good B is $2.40, what does the utility-maximizing rule tell you to do, if the budget allows it?
Purchase 1 more unit of Good B and compare again.
Purchase 1 more unit of Good A and stop.
Purchase 1 more unit of Good B and stop.
Purchase 1 more unit of Good A and compare again.
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Macroeconomics
Authors: N. Gregory Mankiw, William M. Scarth
5th Canadian Edition
1464168504, 978-1464168505
