Assume that diminishing marginal utility applies to both textbooks and concert tickets and that Sun is spending all of his income.If Sun purchases a combination of textbooks and concert tickets such that MU_Textbooks/P_Textbooks = 100 and MU_Tickets/ /P_Ticke_ts = 80,to maximize utility,Sun should buy _____ textbooks and _____ tickets. A)fewer;fewer B)more;fewer C)fewer;more D)more;more

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Quizplus · Accepted Answer

To maximize utility, Sun should buy more textbooks and fewer tickets because the marginal utility per dollar spent on textbooks is higher than that for tickets, indicating that each additional dollar spent on textbooks yields more utility compared to spending that dollar on tickets.

Assume That Diminishing Marginal Utility Applies to Both Textbooks and Concert