A bottle of wine costs $8 and a quiche costs $5.At Robert's present levels of consumption, he spends all his income and receives marginal utility of $10 from the last bottle of wine and marginal utility of $4 from the last quiche.To maximize his total utility, Robert should

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To maximize total utility, the consumer should allocate spending so that the marginal utility per dollar spent is equal across all goods. Currently, Robert's marginal utility per dollar spent on wine is $10/$8 = $1.25, and for quiche, it is $4/$5 = $0.8. Since the marginal utility per dollar spent on wine is higher, Robert should buy more wine and less quiche to equalize the marginal utility per dollar spent across both goods.

A Bottle of Wine Costs $8 and a Quiche Costs