Suppose Fernando allocates his lunch money to pizza and Coke. A Coke costs $1 and a slice of pizza costs $1.50. The marginal utility of the last slice of pizza Fernando ate was 30, and the marginal utility of his last Coke was 25. Fernando spent all of his lunch money. From this information, we can conclude that
A) Fernando allocated his money in a way that maximized his total utility
B) Fernando's total utility would have been higher if he had purchased more Coke and less pizza
C) Fernando's total utility would have been higher if he had purchased more pizza and less Coke
D) Fernando could have increased his total utility by purchasing more Coke but the same quantity of pizza
E) Fernando could have increased his total utility by purchasing more pizza but the same quantity of Coke
Correct Answer:
Verified
Q48: Suppose I buy 3 cups of coffee
Q49: Carla spends all her income on two
Q50: A util represents a unit of measurement
Q51: In the "Interdisciplinary Perspective" titled "A Philosophical
Q52: The water and diamond paradox is called
Q54: The relative scarcity of water in desert
Q55: If a consumer is choosing the optimal
Q56: The difference between the maximum amount a
Q57: Many social policies, such as progressive income
Q58: The MU/P of a good will decrease
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents