Essay
Kylie spends her income of $150 per week on two goods: movies (which cost $5 each) and books (which cost $10 each). At her current level of consumption, the marginal utility from the last movie consumed is 20 and the marginal utility from the last book consumed is 30. Is Kylie maximizing her utility? Why or why not? If not, what should Kylie do to achieve a higher level of utility?
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No, she is not maximizing utility. She s...View Answer
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Correct Answer:
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