Mathematics, 18.01.2021 01:50 candigirl8847
Suppose that Omar's marginal utility for cups of coffee is constant at 1.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second doughnut he eats, 8 for the third he eats, and so on (that is declining 1 unit for each additional doughnut consumed). Suppose that coffee costs $1.00 per cup and doughnuts $1.00 each, and Omar has a budget that he can spend only on doughnuts and coffee. How large would his budget need to be before he would spend a dollar on coffee?
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Suppose that Omar's marginal utility for cups of coffee is constant at 1.5 utils per cup no matter h...
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