Question
Phillip is a huge Toronto Raptors fan and is able to spend $80 budget on two goods, Posters and Banners.He has spent his allocated budget
Phillip is a huge Toronto Raptors fan and is able to spend $80 budget on two goods, Posters and Banners.He has spent his allocated budget such that the marginal utility of Posters (MUP=32) to Banners (MUB=26) is greater than the relative price of Posters (PP=$8) to Banners (PB=$10).
a)Is he maximizing his utility?
b)Explain, if necessary, how heshouldrearrange his purchases to maximize utility?
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International Business
Authors: Michael Czinkota, Iikka A. Ronkainen, Michael H. Moffett
8th edition
470530658, 470530650, 978-0470530658
