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Suppose you have the following information: The budget for Good A and Good B is $25 per week. Price of Good A is $3. Price
Suppose you have the following information:
- The budget for Good A and Good B is $25 per week.
- Price of Good A is $3.
- Price of Good B is $4.
- The Total Utility from Good A and Good B are shown in the table below.
Unit per week | Total Utility from Good A | MU from Good A | MU per dollar spent on Good A | Total Utility from Good B | MU from Good B | MU per dollar spent on Good B |
1 | 100 | 200 | ||||
2 | 180 | 360 | ||||
3 | 240 | 480 | ||||
4 | 280 | 560 | ||||
5 | 300 | 600 | ||||
6 | 309 | 612 |
- Find the opportunity cost of Good A and Good B.
- Complete the table and find the optimal combination of Good A and Good B.
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