Domenica enjoys manicures that cost $20 as well as foot massages that cost $60. Her last manicure provided a marginal utility of 50 while her last foot massage provided a marginal utility of 150. Is Domenica maximizing her total utility?
A) No, she should consume fewer manicures and more foot massages because the latter provides greater marginal utility.
B) No, she should consume more manicures and fewer foot massages because manicures are less expensive.
C) No, she should be consuming less of both services in order to maximize her total utility.
D) Yes, she is maximizing her total utility because the marginal utility per dollar is the same.
Correct Answer:
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