Assume that you allocate your income to calzones and juice and that you have not yet spent your entire budget.If the marginal utility of a fourth calzone is 100 and the marginal utility of a third glass of juice is 50, you would
A) eat a fourth calzone because it has higher marginal utility
B) drink a third glass of juice
C) drink a third glass of juice if its price is lower than the price of calzones
D) drink a third glass of juice if its price is less than half the price of the calzone
E) drink a third glass of juice because it has lower marginal utility
Correct Answer:
Verified
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