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 $18 to spend on cookies and cake. Homer will consume ________ pounds of cookies and ________ slices of cake.
A) 5; 4
B) 4; 5
C) 6; 3
D) None of the above answers is correct.

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 $18 to spend on cookies and cake. Homer will consume ________ pounds of cookies and ________ slices of cake.
A) 5; 4 
B) 4; 5 
C) 6; 3 
D) None of the above answers is correct.

Quizplus · Accepted Answer

Homer will consume 5 pounds of cookies and 4 slices of cake. The marginal utility per dollar spent on cookies is 10, and the marginal utility per dollar spent on cake is 8. So Homer will spend more on cookies than on cake. He has $18 to spend, so he can buy 9 pounds of cookies or 9 slices of cake. He will buy 5 pounds of cookies and 4 slices of cake, which gives him the highest total marginal utility.

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