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(Solution) - At a consumer optimum for all goods purchased marginal utility

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At a consumer optimum, for all goods purchased, marginal utility per dollar spent is equalized. A high school student is deciding between attending Western State University and Eastern State University. The student cannot attend both universities simultaneously. Both are fine universities, but the reputation of Western is slightly higher, as is the tuition. Use the rule of consumer optimum to explain how the student will go about deciding which university to attend?


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This question was answered on: Jul 11, 2017

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