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If Alice's Marginal Utility Per Dollar Spent Is Higher on Magazines

Question 11

Multiple Choice

If Alice's marginal utility per dollar spent is higher on magazines than on baseball tickets and she has spent all of her income, then which of the following is true?


A) She should buy more magazines and fewer baseball tickets.
B) She must not be spending all of her budget.
C) Her total utility is as high as possible.
D) She is getting the highest utility from baseball tickets and magazines, given her budget.

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