Use the following to answer question:
-(Table: Marginal Utility per Dollar III) Look at the table Marginal Utility per Dollar III. If Liyun has $20 to spend on potatoes and clams, then the utility-maximizing combination is _____ pounds of clams and _____ pounds of potatoes.
A) 2; 6
B) 3; 4
C) 1; 8
D) 3; 9

Question

Use the following to answer question: 
-(Table: Marginal Utility per Dollar III) Look at the table Marginal Utility per Dollar III. If Liyun has $20 to spend on potatoes and clams, then the utility-maximizing combination is _____ pounds of clams and _____ pounds of potatoes.
A) 2; 6 
B) 3; 4 
C) 1; 8 
D) 3; 9

Quizplus · Accepted Answer

The marginal utility per dollar for clams is 3, and the marginal utility per dollar for potatoes is 2. So, for every dollar spent on clams, Liyun gets 3 units of utility, and for every dollar spent on potatoes, she gets 2 units of utility. To maximize her utility, she should spend more money on clams and less money on potatoes. So, the utility-maximizing combination is 3 pounds of clams and 4 pounds of potatoes.

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