If the price of pecan rolls is $2,the price of a gyro is $6,and the marginal utility of the last pecan roll consumed is 12,then the marginal utility of the last gyro consumed for a consumer purchasing the optimal consumption bundle of pecan rolls and gyros is 36.

Question

Quizplus · Accepted Answer

The marginal utility of the last unit of a good consumed is equal to the price of the good divided by the marginal utility of the last unit of the other good consumed. In this case, the marginal utility of the last pecan roll consumed is 12 and the price of a pecan roll is $2. Therefore, the marginal utility of the last gyro consumed is 36.

If the Price of Pecan Rolls Is $2,the Price of a Gyro