Sasha buys a warm soda and a slice of cold pizza.The marginal utility from a soda is 40, and the price of the soda is $1.The marginal utility from a slice of pizza is 80.Since Sasha always chooses the utility-maximizing choice, we know the price of a slice of pizza must be:
A.$20.
B.$2.
C.$1.
D.$0.50.
Correct Answer:
Verified
Q350: (Table: Marginal Utility per Dollar of M&Ms)
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