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Suppose that each week Fiona buys 16 peaches and 4 apples at her local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:



multiple choice
The law of diminishing marginal utility does not hold for Fiona.
Fiona is not maximizing her utility.
If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys.
If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be greater than her marginal utility from the 4th apple she buys.

Respuesta :

anthougo

If Fiona buys 16 peaches and 4 apples at her local farmer's market each week, we can infer that C. If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys.

What is marginal utility?

Marginal utility describes the benefit derived from the consumption of one additional unit of a product or service.

The marginal utility can be computed using this formula:

Marginal utility = total utility difference/quantity of goods difference.

This means that marginal utility is equal to the change in total utility divided by the change in the number of goods consumed.

Thus, if Fiona buys 16 peaches and 4 apples at her local farmer's market each week, we can infer that Option C is correct.

Learn more about marginal utility at https://brainly.com/question/15050855

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