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Joaquin's Marginal Utility from an Additional Slice of Pumpkin Pie

Question 127

Multiple Choice

Joaquin's marginal utility from an additional slice of pumpkin pie is 4 utils and his marginal utility from an additional slice of pecan pie is 6 utils. If a slice of pumpkin pie costs $2.50, and a slice of pecan pie costs $3.00, then Joaquin:


A) should reallocate his spending towards pumpkin pie and away from pecan pie.
B) should reallocate his spending towards pecan pie and away from pumpkin pie.
C) is maximizing his utility.
D) should spend more on pumpkin pie and more pecan pie.

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