Assume that a consumer purchases a combination of products A and B. The MUa is 5 and the Pa is $5. The MUb is 6 and the Pb is $6. What should this consumer do to maximize utility?
Please provide the best answer for the statement.
The MUa/Pa = 1. The MUb/Pb = 1. The consumer is maximizing utility and should make no changes in consumption patterns. The marginal utility per dollar is the same for both products.
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a. storing value. b. a modern exchange method. c. barter. d. a non-coincidence of wants.
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After graduating from high school, Balin plans to go to college. The college tuition is $15,000 a year. But, instead of going to college, Balin could take a full-time job paying $20,000. If Balin decides to go to college, what is his opportunity cost for attending for one year?
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