Use the following to answer question 174:
-(Table: Marginal Utility per Dollar III)Use Table: Marginal Utility per Dollar III.If Liyun has $20 to spend on potatoes and clams,then the utility-maximizing combination is _____ kilogram(s)of clams and _____ kilogram(s)of potatoes.
A) 2;6
B) 3;4
C) 1;8
D) 3;9

Question

Use the following to answer question 174: 
-(Table: Marginal Utility per Dollar III)Use Table: Marginal Utility per Dollar III.If Liyun has $20 to spend on potatoes and clams,then the utility-maximizing combination is _____ kilogram(s)of clams and _____ kilogram(s)of potatoes.
A) 2;6 
B) 3;4 
C) 1;8 
D) 3;9

Quizplus · Accepted Answer

The utility-maximizing combination is 2 kilograms of clams and 6 kilograms of potatoes. This is because the marginal utility per dollar for clams is 2, and the marginal utility per dollar for potatoes is 3. So, for every dollar spent on clams, Liyun gets 2 units of utility, and for every dollar spent on potatoes, Liyun gets 3 units of utility. Therefore, Liyun should spend more money on potatoes than on clams in order to maximize her utility.

Use the Following to Answer Question 174