Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 7 - Consumer Choice: Utility Theory and Insights from Neuroscience - Exercises - 7.1 Traditional Consumer Choice: Utility Theory - Page 177: 1.6

Answer

12 iTunes songs 24 utils 48 utils

Work Step by Step

opportunity cost game=$\frac{price\ game}{price\ book}=\frac{12}{1}=12\ books$ marginal cost game=$\frac{price\ game}{price\ book}\times MU_b=\frac{12}{1}\times2=24 utils$ marginal benefit game=marginal utility game=48 utils
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