Solution-Reallocate his spending in order to increase

Reallocate his spending in order to increase utility

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Reference no: EM132519203

Person A currently consumes 10 hot dogs and 6 sodas each week. At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3. If the price of one hot dog is 1 TL and the price of one soda is 0.50 TL, is this individual currently maximizing his utility? If not, how should he reallocate his spending in order to increase his utility?

Reference no: EM132519203

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Reallocate his spending in order to increase utility

Reference no: EM132519203

Reference no: EM132519203

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