According to the utility-maximizing rule

Reference no: EM13692623

Frank spends $75 on 10 magazines and 25 newspapers. The magazines cost $5 each and the newspapers cost $2.50 each. Suppose that his MU from the final magazine is 10 utils while his MU from the final newspaper is also 10 utils. According to the utility-maximizing rule, Frank should:

Reallocate spending from magazines to newspapers.

Reallocate spending from newspapers to magazines.

Be satisfied because he is already maximizing his total utility.

None of the above.

Reference no: EM13692623

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