If Marlowe obtains 9 units of utility per dollar spent on apples and 6 units of utility per dollar spent on oranges, then Marlowe
A)is maximizing total utility.
B)should buy more apples and fewer oranges.
C)should buy more oranges and fewer apples.
D)should buy fewer oranges and fewer apples.

Question

Quizplus · Accepted Answer

Marlowe should buy more apples and fewer oranges because they provide a higher utility per dollar spent. By doing this, he can maximize his total utility as he is getting more satisfaction per dollar spent. If he were to buy more oranges and fewer apples, he would get lower utility per dollar spent, resulting in a lower total utility. Therefore, buying more apples and fewer oranges is the best choice for Marlowe.

If Marlowe Obtains 9 Units of Utility Per Dollar Spent