Suppose you have the following information about the costs of a new video game and new board game, along with the utility generated from each purchase for Libby. The video game costs $25 and would provide Libby with a marginal utility of 50 utils. The board game costs $15 and would provide Libby with a marginal utility of 45 utils.

a. If Libby wants to maximize her marginal utility per dollar. She would choose to purchase the:
i. board game.
ii. video game.

Now suppose Libby's grandmother is purchasing one of the above games as a gift for Libby. Assume Libby incurs no cost for the game and that she does not receive the difference between the two games If she chooses the Cheaper game,

b. Libby will likely ask her grandmother to purchase the:
i. video game.
ii. board game.

a. i. board game

b. i. video game

Explanation:

Marginal utility is the change is total utility after consuming one additional unit. The consumer will be able to maximize its marginal utility when marginal utility of good 1 per one dollar equals to marginal utility of good 2 per one dollar.

In this case of the marginal utility libby will get from from video game is;

50 utils / $25 = 2.

Libby will get marginal utility from board game;

45 utils / $15 = 3

Libby will choose to purchase board game as the marginal utility of board game per dollar is higher than video game.

b. When Libby incurs no cost for the purchase of game than she is likely to go for video game option as the total marginal utility from video game is higher than board game.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer(d) the growth of consumption is likely to remain sluggish even as the economy begins to recover.;