At Frankie's Buy-the-Slice Pizza, Brian eats eight slices of pizza, explaining that at only $2 per slice, the utility-maximizing decision is to eat until your marginal utility per dollar is zero. Brian's explanation is correct.

Question

Quizplus · Accepted Answer

Brian's explanation is incorrect because utility maximization occurs when the marginal utility per dollar spent is equal across all goods, not when it is zero.

At Frankie's Buy-The-Slice Pizza, Brian Eats Eight Slices of Pizza