If Bobby decides that his marginal utility per dollar spent on vanilla ice cream exceeds his marginal utility per dollar spent on chocolate ice cream, he should then
A) buy more chocolate ice cream and less vanilla ice cream.
B) buy more vanilla ice cream and less chocolate ice cream.
C) buy all the vanilla ice cream he can.
D) never buy chocolate ice cream.

Question

Quizplus · Accepted Answer

Bobby should buy more vanilla ice cream and less chocolate ice cream to equalize the marginal utility per dollar spent across both goods, maximizing his total utility.

If Bobby Decides That His Marginal Utility Per Dollar Spent