Wolfgang really likes both rutabagas and broccoli.Suppose the price of each good is $0.60 per pound and Wolfgang is maximizing utility,consuming 5 pounds of rutabagas and 0.5 pound of broccoli per month.At the point of maximal utility,the marginal utility of:
A)the two goods is the same.
B)rutabagas is greater than that of broccoli.
C)broccoli is greater than that of rutabagas.
D)both goods is zero.

Question

Quizplus · Accepted Answer

At the point of maximal utility, according to the principle of equal marginal utility per dollar spent, the marginal utility of the two goods must be the same. This ensures that the consumer is allocating their budget in a way that maximizes their overall satisfaction.

Wolfgang Really Likes Both Rutabagas and Broccoli