If Raul's marginal utility per dollar from bread is 25 and the marginal utility per dollar from butter is 30,
A) rail should purchase more butter and less bread to increase his total utility.
B) Raul's marginal utility from butter will fall if he buys more butter.
C) Raul's marginal utility from bread will rise if he buys less bread.
D) Only answer B and answer C are correct.
E) Answer A, answer B, and answer C are correct.

Question

Quizplus · Accepted Answer

Raul should purchase more butter and less bread to increase his total utility because the marginal utility per dollar is higher for butter. Additionally, as he buys more butter, its marginal utility will decrease, and as he buys less bread, its marginal utility will increase.

If Raul's Marginal Utility Per Dollar from Bread Is 25