The opportunity cost of consuming good A is lower than the opportunity cost of consuming good B. This means that good:
A) A has a higher marginal utility.
B) B has a higher marginal utility.
C) A has a higher marginal utility per dollar.
D) B has a higher marginal utility per dollar.

Question

Quizplus · Accepted Answer

The opportunity cost being lower for good A implies that you give up less of other goods to consume A, suggesting that A provides more utility per dollar spent compared to B.

The Opportunity Cost of Consuming Good a Is Lower Than