If Allison's marginal utility of her 100th dollar of income is greater than Brad's marginal utility of his 10th dollar, then we can conclude:
A) money means more to Allison.
B) money means more to Brad.
C) Brad is richer than Allison.
D) Allison is richer than Brad.
E) nothing, since we can't make interpersonal utility comparisons.

Question

Quizplus · Accepted Answer

Interpersonal utility comparisons are not possible because utility is subjective and varies from person to person. Therefore, we cannot conclude anything about the relative value of money to Allison and Brad based on their marginal utilities.

If Allison's Marginal Utility of Her 100th Dollar of Income