Pam is determined to lose 10 pounds and plans to adhere to a strict diet. But at the coffee break, she sees tray of glazed donuts and can't resist. She forgoes the plain bagel and devours a donut. Both the donut and bagel are priced at $0.50 . When her office mates tease her, she says matter-of-factly that
a. the MU/P of donuts is higher than that of the bagel, and that's that!
b. the MU/P of bagels is higher than that of the donut, and that's that!
c. the consumer surplus associated with bagels was higher than it was for donuts, making donuts more attractive
d. when it comes to food, she's irrational
e. the MU of losing 10 pounds is less than the MU of eating one donut.
A
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