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Frank Is Purchasing Products C and D in Utility-Maximizing Amounts

Question 143

Multiple Choice

Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $4 and the price of D is $2, then


A) the marginal utility of D is twice that of C.
B) the marginal utility of D is the same as that of C.
C) the marginal utility of C is twice that of D.
D) the relationship between the marginal utility of C and D cannot be determined.

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