Jane is maximizing total utility while consuming food and clothing.Her marginal utility from food is 50,and her marginal utility from clothing is 25.If clothing is priced at $10 per unit,the price of food per unit must be
A) $2.
B) $2.50.
C) $5.
D) $20.
Correct Answer:
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A) MUx/MUy =
Q221: Figure 21-10 Q222: Jeffrey spends all of his income on Q224: Figure 21-11 Q226: Figure 21-11 Q227: Figure 21-11 Q228: Amy spends all of her income on Q229: Figure 21-10 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents