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Quanto Quantity Question 3 of 5 At point D, the O A. Marginal benefit of buying more X is greater than the marginal cost. OB.
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We can see that this point lies on the budget constraint which means consumer is using all his income. however at this point the marginal rate of substitution is less than the slope of the budget constraint which means that consumer is using too much of X and using too little of Y. The marginal benefit of buying more X is less than its marginal cost so that the consumption of X should be decreased

Select option B.

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