At her current level of consumption, Wiebke's marginal utility from an additional pencil is 15 utils, and her marginal utility from an additional pen is 10 utils. This implies that Wiebke would be willing to give up at most ________ pencils for an additional pen.
A)0.66
B)0.75
C)1.5
D)3

Question

Quizplus · Accepted Answer

At her current level of consumption, Weibke receives 10 additional utils for each additional pen and 15 additional utils for each additional pencil.  This means that she would be willing to give up 10/15 = 2/3 = 0.66 pencils for one pen.

At Her Current Level of Consumption, Wiebke's Marginal Utility from an Additional