Assume the Price of Cola Is $8 Per Unit and the Price

Multiple Choice

Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Table 19.3
Michael's Utility Schedule
$\begin{array} { | c | r | c | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Cola }\end{array} & \text { TU of Cola } & \begin{array} { c } \text { MU of } \\\text { Cola }\end{array} & \begin{array} { c } \text { Units of } \\\text { Pretzels }\end{array} & \begin{array} { c } \text { TU of } \\\text { Pretzels }\end{array} & \begin{array} { c } \text { MU of } \\\text { Pretzels }\end{array} \\\hline 1 & 46 & 40 & 1 & 30 & 30 \\\hline 2 & & 32 & 2 & & 20 \\\hline 3 & 96 & 24 & 3 & 66 & 16 \\\hline 4 & 112 & & 4 & 78 & \\\hline 5 & 124 & & 5 & 84 & \\\hline\end{array}$ Refer to Table 19.3.If Michael has $28 dollars to spend,why will three colas and four pretzels not be optimal?

A) This combination has less total utility.
B) This combination is affordable but does not maximize utility.
C) This combination is not affordable.
D) This combination has less marginal utility per dollar.