Purchase more chips, If Michael is spending all of his

Purchase more chips

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Reference no: EM138251

Q. Michael likes to eat chips and ice cream. Michael purchased 10 units (bags) of chips at $2 per unit, and his marginal utility of the last unit of chips purchased was 12 units. Michael purchased 7 units (containers) of ice cream at $4 per unit, and his marginal utility of the last unit of ice cream purchased was 20 units. If Michael is spending all of his money on these 2 snacks which he purchase more chips also less ice cream as well as purchase less chips & more ice cream or stay at the same purchase level (10 units of chips and 7 units of ice cream) to maximize his utility? Why?

Reference no: EM138251

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