Suppose you have the following information about the costs of a new video game and new board game, along with the utility generated from each purchase for Libby. The video game costs $25 and would provide Libby with a marginal utility of 50 utils. The board game costs $15 and would provide Libby with a marginal utility of 45 utils.

a. If Libby wants to maximize her marginal utlity per dollar, she would choose to purchase the:

i. board game.

ii. video game.

Now suppose Libby's grandmother is purchasing one of the above games as a gift for Libby. Assume Libby incurs no cost for the game and that she does not receive the difference between the two games if she chooses the cheaper game.

b. Libby will likely ask her grandmother to purchase the:

i. video game

ii. board game.