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  • 3 years ago

If good A has a marginal utility of 30 and a price of $5, and good B has a marginal utility of 10 and a price of $2, then: A) good A is a better buy than good B. B) good B is a better buy than good A. C) goods A and B are of equal value to this consumer. D) neither good A nor B is worth the money. E) goods A and B should both be purchased.

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  1. anonymous
    • 3 years ago
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    in order to understand the choice ( better buy than the other ) we have to divide the MU per unit price . so , for the good A : 30/5=6 For the good B : 10/2=5 definitely , the good A is better than the good B

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