Eating a steak gives Greta satisfaction equal to 55 utils,whereas eating a hamburger gives her a satisfaction of 25 utils.Greta should
A) always choose to eat steak over hamburger.
B) always choose to eat hamburger over steak.
C) eat steak only if it is cheaper than hamburger.
D) eat hamburger only if she has recently eaten steak.
E) eat hamburger only if it is cheaper per util than steak.

Question

Quizplus · Accepted Answer

Greta should choose the option that gives her the highest satisfaction per unit of cost. If the price per util of steak is higher than that of a hamburger, Greta should choose to eat a hamburger. Therefore, she should eat a steak only if it is cheaper per util than a hamburger, and choose hamburger over steak if the price per util of steak is higher.

Eating a Steak Gives Greta Satisfaction Equal to 55 Utils,whereas