Table 10-5
Table 10-5 lists Jay's marginal utilities for burgers and Pepsi.Jay has $7 to spend on these two goods.The price of a burger is $2 and the price of a can of Pepsi is $1.
-Refer to Table 10-5.If Jay can eat all the burgers he wants for free,how many burgers will he consume?

Question

Table 10-5
  Table 10-5 lists Jay's marginal utilities for burgers and Pepsi.Jay has $7 to spend on these two goods.The price of a burger is $2 and the price of a can of Pepsi is $1.
-Refer to Table 10-5.If Jay can eat all the burgers he wants for free,how many burgers will he consume?

Quizplus · Accepted Answer

Jay will consume burgers until the marginal utility of the last burger is zero. If he can eat for free, he will consume until the marginal utility of the next burger is not positive, which typically happens at 5 burgers.

Table 10-5 Table 10-5 Lists Jay's Marginal Utilities for Burgers