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Which of the following is the utility-maximizing rule that Brian should follow while choosing the optimal quantities of these two goods? (Note: In the answer
Which of the following is the utility-maximizing rule that Brian should follow while choosing the optimal quantities of these two goods? (Note: In the answer options that follow, MU stands for "marginal utility.") MU of Water=MU of Jewellery MU of WaterPrice of Jewellery=MU of JewelleryPrice of Water (MU of Water)(Price of Water)=(MU of Jewellery)(Price of Jewellery) MU of WaterPrice of Water=MU of JewelleryPrice of Jewellery Since water costs little and jewellery is expensive, it must follow that when people choose their optimal quantities of water and jewellery to purchase, the marginal utility they receive from the last piece of jewellery they buy is than the marginal utility they receive from the last gallon of water they buy
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