Multiple Choice
For dessert,Mac has the choice between cheesecake and apple pie.The cheesecake has a marginal utility of 50 and a price of $5,and the apple pie has a marginal utility of 30 and a price of $3.Therefore,Mac should buy
A) the cheesecake since the marginal utility is greater
B) the apple pie because its price is lower
C) two servings of apple pie and no cheesecake
D) four servings of cheesecake
E) either the apple pie or the cheesecake,it makes no difference
Correct Answer:
Verified
Correct Answer:
Verified
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