Suppose an individual knows that the marginal utility he receives from the next apple is 5 and that the price of an apple is $2 . He also knows that the marginal utility he receives from the next orange is 3 and the price of an orange is $1 . If the individual is choosing optimally, the next good he will buy is
a. an orange because the marginal utility per dollar spent on an orange is
greater.
b. an orange because the marginal utility of the orange is greater.
c. an apple because the marginal utility per dollar spent on an apple is greater.
d. an apple because the marginal utility of the apple is greater.
a
You might also like to view...
Getting the work done by some other firm at lower costs, when the firm is situated in some other country, is called outsourcing
a. True b. False Indicate whether the statement is true or false
Number of EmployeesTotal Output16211315418520Table 16.2 Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired. If the price of an oil change is $20, and workers get paid $150 per day, how many workers should the business hire?
A. Three B. Zero C. Two D. One