erry spends $ 10 a month on pet dispensers and uperman action figures. His marginal- utility-to-price atio for the pea dispensers is 40, while marginal-utility- o-price ratio for superman action figures is 47. Explain why jerry is not maximizing his utility. What can he do p increase his utility?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 2SCQ: Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to...
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Jerry spends $ 10 a month on pet dispensers and
superman action figures. His marginal- utility-to-price
ratio for the pea dispensers is 40, while marginal-utility-
to-price ratio for superman action figures is 47. Explain
why jerry is not maximizing his utility. What can he do
to increase his utility?
Transcribed Image Text:Jerry spends $ 10 a month on pet dispensers and superman action figures. His marginal- utility-to-price ratio for the pea dispensers is 40, while marginal-utility- to-price ratio for superman action figures is 47. Explain why jerry is not maximizing his utility. What can he do to increase his utility?
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