Tom spends all his income on comics and cola and maximizes his total utility. If the price of a comic is $4 and the price of a can of cola is $1, then the ratio of the ________ is 4.
A) marginal utility from cola to the marginal utility from comics
B) marginal utility from comics to the marginal utility from cola
C) number of comics Tom buys to the number of cola Tom buys
D) total utility from comics to the total utility from cola

Question

Quizplus · Accepted Answer

The ratio of the marginal utility from comics to the marginal utility from cola is equal to the ratio of their prices, which is 4:1.

Tom Spends All His Income on Comics and Cola and Maximizes