Use the following to answer question 172:
-(Table: Marginal Utility per Dollar)Use Table: Marginal Utility per Dollar.If Damian has $9 to spend on potatoes and clams,then the utility-maximizing combination is _____ kilogram(s)of clams and _____ kilogram(s)of potatoes.
A) 0;9
B) 2;2
C) 1;6
D) 2;3

Question

Use the following to answer question 172: 
-(Table: Marginal Utility per Dollar)Use Table: Marginal Utility per Dollar.If Damian has $9 to spend on potatoes and clams,then the utility-maximizing combination is _____ kilogram(s)of clams and _____ kilogram(s)of potatoes.
A) 0;9 
B) 2;2 
C) 1;6 
D) 2;3

Quizplus · Accepted Answer

The marginal utility per dollar for clams is 6, and the marginal utility per dollar for potatoes is 3. So, for every dollar spent on clams, Damian gets 6 utils, and for every dollar spent on potatoes, he gets 3 utils. To maximize his utility, Damian should spend his money on the good that gives him the most utils per dollar. In this case, that's clams. So, he should spend $6 on clams and $3 on potatoes.

Use the Following to Answer Question 172