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You Wish to Buy Only One CD

Question 109

Essay

You wish to buy only one CD. Use the rule of equal marginal utility per dollar to determine which one to purchase: (a) Usher's latest CD for $15 which gives you 75 units of utility, or (b) Tom Petty and the Heartbreakers' Greatest Hits for $10 that gives you 100 units of utility?

Correct Answer:

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You should buy the Tom Petty C...

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