Business, 28.07.2021 16:50 anthonybowie99
There are only two brands of tennis balls Tom purchases: "Wilson" and "Penn." The more he purchases of a ball, the lower the marginal utility of that ball. He spends all of his income and his marginal utility of a "Wilson" is 6 and his marginal utility of an "Penn" is 12. The price of a "Wilson" ball is $1 and the price of an "Penn" is $2. Which of the statements is true based on the above information?
A) Tom could increase his satisfaction by trading "Wilson" for "Penn."
B) In equilibrium, Tom must give up three "Penn" balls for two "Wilson" balls.
C) Tom would be willing to give up two "Penn" balls for one "Wilson" ball.
D) Tom can increase his satisfaction by doing nothing
Answers: 1
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There are only two brands of tennis balls Tom purchases: "Wilson" and "Penn." The more he purchases...
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