Wafaa buys three bars of chocolates and four bags of almonds. The marginal utility of the third chocolate bar is 18 of marginal utility and the marginal utility from the fourth bag of almonds is also 18. Is Wafaa maximizing her utility?
A) No, she must cut back to three bags of almonds to equate her quantities of the two goods.
B) Yes, the marginal utility from the last unit of each food item is equal.
C) No, she must buy one more chocolate bar to equate her quantities of the two goods.
D) Without information on her income and the prices of the two goods, we cannot answer the question.
Correct Answer:
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