The following table gives the marginal utility of Johns consumption of three goods: A, B, and C.

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The following table gives the marginal utility of John’s consumption of three goods: A, B, and C. image text in transcribed

a. Good A costs $2 per unit, good B costs $1, and good C costs $3. How many units of each should a consumer with $12 buy to maximize his or her utility?

b. How will the answer change if the price of B rises to $2?

c. How about if the price of C is 50 cents but the other prices are as in a?

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Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

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Question Posted: Mar 14, 2024 04:02 AM

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The following table gives the marginal utility of Johns consumption of three goods: A, B, and C.

Question:

Units of Consumption MU of A MU of B MU of C 20 25 45 23 18 20 30 16 15 24 4: 14 10 18 LO 10 20 10 12 8 15 6 852 12

Step by Step Answer:

Microeconomics

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