9, How many items will Marissa buy if her total utility is given by the table...

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9, How many items will Marissa buy if her total utility is given by the table below and the price of each item is $20? Quanti

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Answer 1

Answer #1

If price = $20, so the person will only buy where Marginal utility from the good is either greater or equal to the price we paid.

No rational consumer will ever buy a good which give him/her less utility than the price he/she paid.

Here, MU of 4th unit is 20, so the consumer will only buy 4 units because after that MU falls less than 20.

Ans - D) 4

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Answer 2

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