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Business, 18.11.2019 21:31 alexshakim8893

Melika spends all of her income on magazines and carry-out lunches. the price of a magazine is $5, and the price of a carry-out lunch is $7. at the current consumption bundle, the marginal utility of magazines is 10, and the marginal utility of carry-out lunches is 21. assuming that diminishing marginal utility applies to both goods, to maximize utility given her income, melika should: a) continue to consume the current bundle. b) consume more carry-out lunches and fewer magazines. c) consume equal amounts of magazines and carry-out lunches. d) consume more magazines and fewer carry-out lunches.

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Melika spends all of her income on magazines and carry-out lunches. the price of a magazine is $5, a...
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