Stanley receives the following marginal utilities from the first four car washes that he buys each year,respectively: 20,15,10,and 5.If each car wash sells for $10,then the marginal utility per dollar spent on the third car wash is

Question

Quizplus · Accepted Answer

The marginal utility per dollar spent is calculated by dividing the marginal utility by the price. For the third car wash, the marginal utility is 10, and the price is $10, so the marginal utility per dollar is 10/10 = 1.

Stanley Receives the Following Marginal Utilities from the First Four