Cookies Cake

-The above table shows Homer's marginal utility from consuming various quantities of chocolate chip cookies and cake. The price of cookies is $2 per pound, the price of cake is $2 per slice and Homer has $12 to spend on cookies and cake. Homer will consume ________ of cookies and ________ of cake.
A) 1 pound; 5 slices
B) 2 pounds; 4 slices
C) 3 pounds; 3 slices
D) 5 pounds; 2 slices

Question

Cookies Cake
 
-The above table shows Homer's marginal utility from consuming various quantities of chocolate chip cookies and cake. The price of cookies is $2 per pound, the price of cake is $2 per slice and Homer has $12 to spend on cookies and cake. Homer will consume ________ of cookies and ________ of cake.
A) 1 pound; 5 slices 
B) 2 pounds; 4 slices 
C) 3 pounds; 3 slices 
D) 5 pounds; 2 slices

Quizplus · Accepted Answer

Homer should allocate his budget such that the marginal utility per dollar spent on cookies equals the marginal utility per dollar spent on cake. Given the prices and budget, 3 pounds of cookies and 3 slices of cake maximize his utility.

Cookies Cake -The Above Table Shows Homer's Marginal Utility from Consuming Various