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According to the example in the provided content, which combination gives higher total utility: spending all on one good or combining spending?

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Question

According to the example in the provided content, which combination gives higher total utility: spending all on one good or combining spending?

Options

  • Spending all on mangoes

  • Spending all on oranges

  • Combining spending on mangoes and oranges

  • Spending nothing

MCQ
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Solution

Combining spending on mangoes and oranges

Explanation:

Combining spending yields higher total utility than spending on only one good.

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