The following graph shows the marginal utility derived from milk and giant cookies purchased by Sandeep.

-Refer to the above graph to answer this question.Which of the following combinations will give Sandeep the greatest total utility?
A)2 milk and 5 cookies.
B)3 milk and 4 cookies.
C)4 milk and 3 cookies.
D)5 milk and 2 cookies.
E)6 milk and 1 cookie.

Question

The following graph shows the marginal utility derived from milk and giant cookies purchased by Sandeep.
 
-Refer to the above graph to answer this question.Which of the following combinations will give Sandeep the greatest total utility?
A)2 milk and 5 cookies. 
B)3 milk and 4 cookies. 
C)4 milk and 3 cookies. 
D)5 milk and 2 cookies. 
E)6 milk and 1 cookie.

Quizplus · Accepted Answer

The point where the slopes of the two curves intersect gives the point of maximum total utility. In this case, it occurs at 5 milk and 2 cookies. At this point, the marginal utility of milk is 10 and the marginal utility of cookies is 30, yielding a total utility of 50. None of the other choices gives a higher total utility.

The Following Graph Shows the Marginal Utility Derived from Milk