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After reading the nutritional label on the box of his favorite cookies, Ernesto was shocked to discover the high sugar content. As a result, cookies don’t bring him the same satisfaction anymore, falling from 25 utils to 12 utils. Benefiting from more efficient machinery, Ernesto’s favorite cookie manufacturer also lowered the price per box. What happens to Ernesto’s marginal utility per dollar spent?
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After reading the nutritional label on the box of his favorite cookies, Ernesto was shocked to disco...
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