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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

Column 1

Column 2

Column 3

Column 4

Column 5

Column 6

Units A MUa

Units B MUb

Units C MUc

Units D MUd

Number of $

Saved MU

1 72

1 24

1 14

1 36

1 5

2 54

2 16

2 12

2 30

2 4

3 45

3 12

3 9

3 24

3 3

4 36

4 8

4 6

4 20

4 2

5 27

5 6

5 3

5 18

5 1

6 18

6 3

6 1

6 16

6

7 9

7 1

7

7 12

7 1/4

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