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Suppose Sirach Knows That the Price of Doughnuts Is $3

question 12

True/False

Suppose Sirach knows that the price of doughnuts is $3 and the price of cupcakes is $4.He also knows that the next doughnut he consumes will increase his total utility by 6 utils and the next cupcake will increase his total utility by 10 utils.Assuming he has enough money to buy either,Sirach should buy a doughnut next.


Definitions:

Obesity

A health condition marked by an abnormal amount of body fat which elevates the likelihood of facing health issues.

France

A country in Western Europe known for its rich history, cultural landmarks, and significant contributions to art, science, and philosophy.

Underestimate

To judge something to be smaller or less important than it actually is.

Overestimate

To assess something as greater, more important, or more significant than it actually is.

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