When Homer has 5 doughnuts, his marginal value is 15¢ per doughnut. We can conclude that Homer
a. places a value of 3¢ on each doughnut he owns.
b. needs to purchase more than 5 doughnuts to reach his optimum.
c. receives 75¢ worth of total satisfaction from his 5 doughnuts.
d. would refuse to pay more than 15¢ for a sixth doughnut.
d. would refuse to pay more than 15¢ for a sixth doughnut.
Economics
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