Wolfgang really likes rutabagas and likes broccoli fairly well. Suppose the price of each good is $0.60 per pound and Wolfgang is maximizing utility, consuming 5 pounds of rutabagas and 0.5 pound of broccoli per month. At the point of maximal utility, the marginal utility of:
A) the two goods is the same.
B) rutabagas is greater than that of broccoli.
C) broccoli is greater than that of rutabagas.
D) both goods is zero.

Question

Quizplus · Accepted Answer

The marginal utility of the two goods is the same at the point of maximal utility. This is because if the marginal utility of one good was greater than the other, Wolfgang could increase his utility by consuming more of that good and less of the other good.

Wolfgang Really Likes Rutabagas and Likes Broccoli Fairly Well