Multiple Choice
Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $2 and $4, respectively. The marginal utility of the last units of A and B are 16 and 24, respectively. These data suggest that Ms. Thomson
A) has preferences that are at odds with the principle of diminishing marginal utility.
B) considers A and B to be complementary goods.
C) should buy less A and more B.
D) should buy less B and more A.
Correct Answer:
Verified
Correct Answer:
Verified
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