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Percy Currently Buys Soup at $4 Per Bowl, and Tea

Question 64

Multiple Choice

Percy currently buys soup at $4 per bowl, and tea at $2 per cup. His marginal utility from soup is 12 and his marginal utility from tea is 8. The opportunity cost of purchasing one more cup of tea is:


A) 1.5
B) 2
C) 0.66
D) 0.5

Correct Answer:

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