Sanjiv is a keyboard player in a progressive metal band. His band offers fans three types of merchandise with the band’s logo: buttons, stickers, and T-shirts. The band charges $20 for a T-shirt but offers buttons and stickers for free. How does marginal utility explain this decision?
a. The marginal utility of the buttons and stickers declines as fans take more, whereas the marginal utility of the T-shirts increases as fans buy more.
b. The marginal utility of an additional sticker or button is very low compared to the marginal utility of an additional T-shirt.
c. The marginal utility per dollar of the buttons and stickers is much higher than the marginal utility per dollar of the T-shirts.
d. It is easier for fans to reach consumer equilibrium by taking additional buttons and stickers than it is when buying additional T-shirts.
b. The marginal utility of an additional sticker or button is very low compared to the marginal utility of an additional T-shirt.
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