The Following Table Presents Mary's Marginal Utility for Each of the Four

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The Answer is In equilibrium, we know that In equilibrium, we know that = = = . Since P2 = 2P1, we know we need a bundle such that MU2 = 2MU1. This only occurs at bundle C. In fact, the marginal utility per dollar across all goods are equivalent for bundle C. Bundle C is the optimal choice.

In equilibrium, we know that = = = . Since P<sub>2</sub> = 2P<sub>1</sub>, we know we need a bundle such that MU<sub>2</sub> = 2MU<sub>1</sub>. This only occurs at bundle C. In fact, the marginal utility per dollar across all goods are equivalent for bundle C. Bundle C is the optimal choice.

=

. Since P₂ = 2P₁, we know we need a bundle such that MU₂ = 2MU₁. This only occurs at bundle C. In fact, the marginal utility per dollar across all goods are equivalent for bundle C. Bundle C is the optimal choice.

The Following Table Presents Mary's Marginal Utility for Each of the Four

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The Following Table Presents Mary's Marginal Utility for Each of the Four

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Correct Answer:VerifiedShow Answer

Correct Answer:
Verified