Question
Ricardo has $86 to spend, the following is his Marginal Uitility MU, amounts that he gets from consuming goods A,B,C,& D, and in column 5
Ricardo has $86 to spend, the following is his Marginal Uitility MU, amounts that he gets from consuming goods A,B,C,& D, and in column 5 is the MU for each $1 of saving. Price are as follows Pa= $9, Pb= $8, Pc = $3, Pd= $24.
A what quantities of A,B,C,D will Ricardo consume to maximize his utility? 10 pts
B How much will Ricardo save? 5 pts
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Microeconomics
Authors: Jeffrey M. Perloff
8th edition
134519531, 978-0134519531
