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Tom Spends $20 a Month on CDs and Magazines

Question 11

Multiple Choice

Tom spends $20 a month on CDs and magazines. The price of a CD is $6 and the price of a magazine is $4. When Tom maximizes his utility, the marginal utility from CDs is ________ the marginal utility from newspapers.


A) the same as
B) 1/2
C) 20 times
D) 1 1/2 times

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