Suppose the seventh carrot you consume provides a marginal utility of 3 utils and the eighth carrot provides a marginal utility
1 answer:
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Answer: Option (C) is correct.
Explanation:
The following rule should be use to choose the optimal quantities of two goods:
Marginal utility refers to the utility that a consumer can get from the additional unit of a commodity.
From the above equation, we can predict that marginal utility from the last TV is greater than the marginal utility obtained from the last gallon of juice. We know that Juice is less expensive as compared to the price of TV.