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Question
When presented with two choices for afternoon entertainment, Riana has a clear favorite: going to the movies provides her with 40 utils, while attending a baseball game provides 32 utils. The price for both tickets is $5, causing Riana to choose the movies. What price for a baseball game ticket would cause Riana to choose that instead?
a. $3.99
b. $4.00
c. $4.01
d. $1.60
e. The ticket price is irrelevant because the marginal utility will always be greater.
Answer
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Related questions
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