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stars_and_moon stars_and_moon
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8 years ago
John is buying three pairs of shorts and four shirts.  The marginal utility of the 3rd pair of shorts is 50 utils and the marginal utility of the 4th shirt is 40 utils.  Which of the following statements is true?
A) John should be more shirts and less shorts because the marginal utility of shorts is greater than the marginal utility of shirts.
B) It is not possible to say whether or not John is maximizing utility without information about the price of shorts and the price of shirts.
C) John is maximizing utility.
D) John should buy more shorts and less shirts because the marginal utility of shorts is greater than the marginal utility of shirts.
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kingbykingby
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8 years ago
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#2
8 years ago
Incredible!
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#3
8 years ago
I was slightly debating this one, thanks for the feedback
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