A Child Is Given $4 of Pocket Money to Be

question 164

Multiple Choice

A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table. Based on taste and preference alone, which good does the child prefer?

• A)chocolates
• B)hard candies
• C)The child equally likes chocolates and hard candies.
• D)One cannot tell from the given data.

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