Economics Marginal utility Question?

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Homer J. Simpson

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Utility is maximized when the marginal rate of substitution = the slope of the budget curve, which is 2 (or 0.5) depending on which is on the horizontal and vertical.

a is necessary, but not sufficient. b & c are wrong. So d.
 
Lise maximizes her utility by eating both pizzas and burritos. The price of a pizza is $10 and the price of a burrito is $5. When lisa's utility is maximized
a) the marginal utility of a pizza is larger than the marginal utility of a burrito
b) the marginal utility of a burrito is larger than the marginal utility of a pizza
c)the marginal utility of both goods is the same.
d) the good with the larger marginal utility cannot be determined without more information
 
If there is no spending limit, I think the answer would be c), but if there is a spending limit, then b is the answer. This would be because you could afford more burritos, and if burritos have a greater marginal utility, then you get greater joy out of just eating burritos.
 
If there is no spending limit, I think the answer would be c), but if there is a spending limit, then b is the answer. This would be because you could afford more burritos, and if burritos have a greater marginal utility, then you get greater joy out of just eating burritos.
 
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