Refer to the information provided in Figure 6.15 below to answer the question that follows. Figure 6.15
-Refer to Figure 6.15. Why was Jason not maximizing his utility at point B?

Question

Refer to the information provided in Figure 6.15 below to answer the question that follows.  Figure 6.15
-Refer to Figure 6.15. Why was Jason not maximizing his utility at point B?

Quizplus · Accepted Answer

Jason is not maximizing his utility at point B because his marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog. This means that he would receive greater satisfaction, or utility, from spending one more dollar on a hot dog instead of a sandwich. Therefore, he could increase his total utility by reallocating his spending towards hot dogs instead of sandwiches.

Refer to the Information Provided in Figure 6