Consider Rons demand for after school care for his children. The marginal benefit Ron receives for every
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Consider Ron’s demand for after school care for his children. The marginal benefit Ron receives for every hour of child care is provided in the accompanying table. Using the Rational Rule for Buyers, if an hour of child care costs $24, how many hours would Ron purchase each day? What about for $18 per hour? Draw Ron’s marginal benefit curve and his demand curve.
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The Rational Rule for Buyers suggests that a buyer will purchase a good or service up to the point w...View the full answer
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