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

Question

Quizplus · Accepted Answer

At the point of maximal utility, the consumer equates the marginal utility per dollar spent on each good. Since the price of both goods is the same and there is no information given on the marginal utility of each good, we can assume that at the point of maximal utility the marginal utility of rutabagas and broccoli is the same. Therefore, the best choice(s) for Wolfgang are to consume both rutabagas and broccoli in amounts that equate their marginal utility per dollar spent.

Wolfgang Really Likes Both Rutabagas and Broccoli