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Dave currently consumes 10 hot dogs and 6 sodas each week At his current consumption basket his marginal utility for hot dogs

Dave 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 and the price of one soda is $0.50, is Dave currently maximizing his utility? If not, how should he reallocate his spending in order to increase his utility?

May 02 2020 View more View Less

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