Assume that omars marginal utility for cups of coffee is, Ask an Expert

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Q. Assume that Omar's marginal utility for cups of coffee is constant at 1.5 utils every cup no matter Elucidate how many cups he drinks. On the other hand, his marginal utility every doughnut is 10 for the 1st doughnut he eats, 9 for the second he eats, 8 for the third he eats also so on (that is, declining by 1 util every additional doughnut). In addition, Assume that coffee costs $1 every cup; doughnuts cost $1 each also Omar has a budget that he can spend only on doughnuts, coffee, or both. Elucidate how big would that budget have to be before he would spend a dollar buying a 1st cup of coffee

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9170529

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