If Marlowe obtains 9 units of utility per dollar spent on apples and 6 units of utility per dollar spent on oranges, then Marlowe
A)is maximising total utility.
B)should buy more apples and fewer oranges.
C)should buy more oranges and fewer apples.
D)should buy fewer oranges and fewer apples.

Question

Quizplus · Accepted Answer

Marlowe should allocate more of his budget towards the good that provides the highest marginal utility per dollar, which in this case is apples with 9 units of utility per dollar. Therefore, he should buy more apples and fewer oranges.

If Marlowe Obtains 9 Units of Utility Per Dollar Spent