For a consumer, the marginal utility of good A is 25 and its price is $5. The marginal utility of good B is 60 and its price is $12. The consumer has allocated his entire budget. Is this consumer maximizing his total utility? Explain your answer

What will be an ideal response?

Yes, the consumer is maximizing his utility. He has allocated his entire budget and he is consuming the combination of goods A and B such that the marginal utility per dollar from each is the same.

Economics

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Extractive economic institutions are:

A) likely to prevent entrepreneurs with new ideas from entering into the right line of business. B) likely to encourage entrepreneurs with new ideas from entering into the right line of business. C) found only in market economies. D) found only in command economies.

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When the U.S. government buys aircraft from BAe, a British corporation, it pays for them using

A) euros. B) pounds. C) dollars. D) foreign exchange rates.

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