Assume that a consumer purchases a combination of products Y and Z. The MUy is 50 and the Py is $25. The MUz is 20 and the Pz is $5. What should this consumer do to maximize utility?
Please provide the best answer for the statement.
The MUy/Py = 2. The MUz/Pz = 4. The consumer should consume more of product Z and less of product Y until the marginal utility per dollar is the same for both products.
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