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Sarah Consumes Pizzas and Hamburgers

Question 108

Multiple Choice

Sarah consumes pizzas and hamburgers. The price of a hamburger is $1 and the marginal utility from her last hamburger is 5. Let Pp be the price of a pizza and MUp be the marginal utility of pizzas. In consumer equilibrium, the ratio MUp/Pp for Sarah's last pizza must equal


A) 0.2.
B) 1.0.
C) 5.0.
D) infinity.

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