At Frankie's Buy-the-Slice Pizza,Brian eats eight slices of pizza.He says that,because pizza is $2 per slice,the utility-maximizing decision is to eat until your marginal utility per dollar is zero.Brian's explanation is correct.

Question

Quizplus · Accepted Answer

Brian's explanation is incorrect because the utility-maximizing decision is to eat until the marginal utility per dollar spent on the last slice of pizza equals the marginal utility per dollar spent on other goods, not until it is zero.

At Frankie's Buy-The-Slice Pizza,Brian Eats Eight Slices of Pizza