Suppose a consumer really likes rutabagas and likes broccoli fairly well.Suppose the prices of both goods are $0.60 per pound and that the consumer is maximizing utility.We can conclude that:
A) the marginal utilities of both goods are the same.
B) the marginal utility of rutabagas is greater than the marginal utility of broccoli.
C) the marginal utility of broccoli is greater than the marginal utility of rutabagas.
D) the marginal utility of both goods is zero.

Question

Quizplus · Accepted Answer

When a consumer is maximizing utility and the prices of two goods are the same, the marginal utility per dollar spent on each good must be equal. This ensures that the consumer is getting the most satisfaction possible from their spending, given their budget.

Suppose a Consumer Really Likes Rutabagas and Likes Broccoli Fairly