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 is Jason not maximizing his utility at point C?
A) He is not spending his entire budget.
B) His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog.
C) His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog.
D) He is maximizing his utility at point C.

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 is Jason not maximizing his utility at point C?
A) He is not spending his entire budget. 
B) His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog. 
C) His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog. 
D) He is maximizing his utility at point C.

Quizplus · Accepted Answer

At point C, if Jason's marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog, it means he could increase his total utility by spending more on sandwiches and less on hot dogs, indicating he is not at a utility-maximizing allocation of his budget.

Refer to the Information Provided in Figure 6