Solved

Benny Spends All of His Money Buying Wine and Cheese

Question 351

Essay

Benny spends all of his money buying wine and cheese.The marginal utility of the last bottle of wine he bought is 60, and the marginal utility of the last block of cheese he bought is 30.The price of wine is $3, and the price of cheese is $2.Benny:
A.is buying wine and cheese in the utility-maximizing amounts.
B.should buy more wine and less cheese.
C.should buy more cheese and less wine.
D.is spending too much money on wine and cheese.

Correct Answer:

verifed

Verified

should buy...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents