Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose an individual knows that the marginal utility he receives from the next apple is 5 and that the price of an apple is $2.

Suppose an individual knows that the marginal utility he receives from the next apple is 5 and that the price of an apple is $2. He also knows that the marginal utility he receives from the next orange is 3 and the price of an orange is $1. If the individual is choosing optimally, the next good he will buy is a. an apple because the marginal utility of the apple is greater. b. an orange because the marginal utility per dollar spent on an orange is greater. c. an orange because the marginal utility of the orange is greater. d. an apple because the marginal utility per dollar spent on an apple is greater

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial economics applications strategy and tactics

Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris

12th Edition

9781133008071, 1439079234, 1133008070, 978-1439079232

More Books

Students also viewed these Economics questions

Question

Define the purpose of the statement of cash flows. LO1

Answered: 1 week ago