Caitlin spends her money on tuition and books. One credit hour of tuition costs her $320; each

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Caitlin spends her money on tuition and books. One credit hour of tuition costs her $320; each book costs her $200. Currently, the marginal utility of a credit hour to Caitlin is 80; the marginal utility of another book is 40.

a. Is Caitlin maximizing her utility?

b. Should Caitlin buy more books and enroll in fewer credit hours?

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Microeconomics

ISBN: 9781319105563

3rd Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Feb 21, 2020 12:07 PM

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Caitlin spends her money on tuition and books. One credit hour of tuition costs her $320; each

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a Caitlin maximizes her utility when or 02 M tuition P tuition 80320or 025 Because ...View the full answer

Microeconomics

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