If Mr. McLean thinks the last dollar spent on bowling yields more satisfaction than the last dollar spent on hamburgers, and McLean is a utility-maximizing consumer, he should
A) bowl less, so the marginal satisfaction from expenditures in this area will increase.
B) spend more on hamburgers, so total satisfaction from that activity will increase.
C) eliminate spending on hamburgers.
D) bowl more and spend less on hamburgers.

Question

Quizplus · Accepted Answer

Since Mr. McLean believes that the last dollar spent on bowling yields more satisfaction than the last dollar spent on hamburgers, he should increase his spending on bowling and decrease his spending on hamburgers to maximize his overall satisfaction (utility). Therefore, he should bowl more and spend less on hamburgers, which is option D.

If Mr McLean Thinks the Last Dollar Spent on Bowling Yields