Ask Question
1 April, 20:07

Suppose Barry is maximizing his utility from consuming used paperback novels and audio books. The price of a used novel = $4 and the price of an audio book = $8. If the marginal utility of the last novel was 32 units of utility (utils) what was the marginal utility of the last audio book purchased? A. 2 utils B. 12 utils C. 16 utils

+2
Answers (1)
  1. 2 April, 00:05
    0
    None of the answers is correct, it should be 64 utils

    Explanation:

    If Barry's utility from consuming a used novel is 32 utils and the book costs $4, he was able to get 8 utils per dollar ( = 32 / $4).

    If an audio book costs $8, then Barry should obtain $8 x 8 utils per dollar = 64 utils.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose Barry is maximizing his utility from consuming used paperback novels and audio books. The price of a used novel = $4 and the price ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers