Joe has $16 to spend on Twinkies and Ho-Hos. Twinkies have a price of $1 per pack,
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Marginal 20 utility of 18 Ho-Hos 16 14 12 10 Marginal utility of Ho-Hos 2 10 12 Quantity of Ho-Hos (number of packs) 6. Marginal 12 utility of Twinkies 10 Marginal utility of Twinkies 3 Quantity of Twinkies (number of packs) 4)
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Joe will maximize his utility if he spends his 16 so tha...View the full answer
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