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stars_and_moon stars_and_moon
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7 years ago
Don goes to the bookstore to buy some mystery novels and some romance novels.  When he goes up to the counter, he has five mystery novels and three romance novels.  The price of mystery novels is $10 and the price of romance novels is $5.  The total utility of all five mystery novels is 100 and the marginal utility of the 5th mystery novel is 10.  The total utility of all three romance novels is 40 and the marginal utility of the 3rd romance novel is eight.  Which of the following statements is accurate?
A) Don should buy more mystery novels and fewer mystery novels because the marginal utility of the last mystery novel is greater than the marginal utility of the last romance novel.
B) Don should buy more mystery novels and fewer romance novels because the total utility from mystery novels is more than the total utility for romance novels.
C) Don should buy more romance novels and fewer mystery novels because he is buying more mystery novels than romance novels.
D) Don should buy more romance novels and fewer mystery novels because the marginal utility per dollar spent on romance novels is greater than the marginal utility per dollar spent on mystery novels.
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kingbykingby
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7 years ago
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7 years ago
I figured, great answer
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7 years ago
I instantly knew the answer when I read the question, happy to help
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