Multiple Choice
The Smith family is allocating its monthly household expenditure between only two goods, foodandclothing. Suppose that the price of food is $12 per unit, and the price of clothing is $16 per unit and that the marginal utility that the family is receiving from its consumption of clothing is currently200. What is the family's marginal utility from its consumption of food if it is maximizing its utility?
A) 75
B) 16
C) 12
D) 150
E) 200
Correct Answer:
Verified
Correct Answer:
Verified
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