Multiple Choice
You have one free movie to give away. Susie Wong would receive 75 units of utility from the pass while Ralph Zilda would get 90 units of utility from the pass. Movie tickets sell for $8 at the theater. You want to create the most satisfaction possible by giving away the pass. Who should the movie be given to?
A) Susie because her current utility is lower.
B) Ralph because he will receive the most total utility.
C) Ralph because his marginal utility per dollar is higher.
D) Not Susie because her marginal utility is lower.
E) There is not enough information to decide.
Correct Answer:
Verified
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