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Jason Is Trying to Decide Whether to Buy a Bagel

Question 77

Multiple Choice

Jason is trying to decide whether to buy a bagel or a muffin for breakfast.The bagel costs $.50 and has a marginal utility of 5.The muffin costs $1 and has a marginal utility of 20.Which should he buy,and why?


A) The muffin,because it has a higher marginal utility
B) The muffin,because it has a lower marginal utility per dollar
C) The bagel,because it costs less
D) The bagel,because it has a higher marginal utility per dollar
E) The muffin,because it has a higher marginal utility per dollar

Correct Answer:

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