Unformatted text preview: was higher.” He didn’t elaborate. In terms of the theory set forth in chapter 5 of our textbook, did he mean: a. The Lockheed quality was higher? b. The Lockheed price was lower? c. If neither, what did he mean? In terms of the economic theory, he means neither higher quality or lower price. Instead, he means that the Marginal Utility Price ratio (MU/P) of Lockheed is higher than the others. This shows that the marginal utility from every dollar spent on Lockheed planes is the highest. Therefore, it is chosen....
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This note was uploaded on 04/14/2010 for the course ECON 2345 taught by Professor Jamison during the Spring '10 term at York University.
- Spring '10