Suppose that Reza buys two products and that the marginal utility of an additional carton of soy milk is 20 and its price is $1.25,whereas the marginal utility for an additional orange costing 50 cents is 7.
-Refer to the above information to answer this question.What can be deduced?
A) The MU per dollar spent on soya milk is equal to that of an orange.
B) The MU per dollar spent on soya milk is greater than that of an orange.
C) The MU per dollar spent on soya milk is less than that of an orange.
D) The MU per dollar spent on soya milk is 25.
E) The MU per dollar spent on an orange is $3.50.
Correct Answer:
Verified
Q1: What is meant by the term utility?
A)A
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