Question
Parvez, a pharmacology student, had allocated $120 per month to spend on paperback novels and used CDs. Novels cot $8 each; CDs cost $6 each.
Parvez, a pharmacology student, had allocated $120 per month to spend on paperback novels and used CDs. Novels cot $8 each; CDs cost $6 each. Suppose that parvez is spending $120 monthly on paperbacknovel and used CDs. For novels, MU/P=5; for CDs, MU/P=4. Is he maximizing his utility? If not, should he consume (1) more novels and fewer CDs or (2) more CDs and fewer novels?Explain briefly.
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Macroeconomics Principles and Applications
Authors: Robert e. hall, marc Lieberman
5th edition
1111397465, 9781439038970, 1439038988, 978-1111397463, 143903897X, 9781439038987, 978-1133265238
