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Suppose Abe Is Allocating His Entire Income and He Receives

Question 347

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Suppose Abe is allocating his entire income and he receives 100 units of utility per dollar from the tenth slice of pizza and 200 units of utility per dollar from his second soda. Is Abe maximizing his utility? Should Abe change his consumption of pizza and soda?

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Abe is not maximizing his utility becaus...

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