(Old Version) Utility Maximization: Diminishing Marginal Utility

Mr. Clifford explains utility maximization using an example of avocados and mangoes with a $70 budget. He discusses the law of diminishing marginal utility and emphasizes calculating marginal utility per dollar spent. The video guides viewers through a decision-making process to maximize utility by choosing the optimal combination of goods.

What is the law of diminishing marginal utility?

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What steps should be taken to maximize benefit given a budget constraint?

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How does the price of avocados and mangoes affect utility maximization?

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What is the significance of calculating marginal utility per dollar spent?

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Describe the combination of avocados and mangoes that maximizes utility in the example given.

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