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Logan Has $20 and Is Trying to Decide Between Tubs

Question 21

Multiple Choice

Logan has $20 and is trying to decide between tubs of ice-cream and bars of chocolate. Each tub of ice-cream is worth $10 while each bar of chocolate is worth $5. Logan calculates that if he consumes an entire tub of ice-cream then he will gain an extra 30 units of utility, while if he consumes a bar of chocolate then he will get an extra 15 units of utility. If Logan is only interested in maximizing his utility, which of the following statements cannot be correct?


A) Logan should buy two tubs of ice-cream.
B) Logan should buy four bars of chocolate.
C) Logan should buy one tub of ice-cream and two bars of chocolate.
D) Logan should buy one tub of ice-cream and one bar of chocolate.

Correct Answer:

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