Solved

Jamie's Marginal Utility for Consuming Muffins and Doughnuts in Utils

Question 22

Multiple Choice

Jamie's marginal utility for consuming muffins and doughnuts in utils are as follows.Jamie spends $4 for breakfast every morning,the price per muffin is $1.00 and the price per doughnut is $0.50.  Muffin/Day  Marginal Utility  per Muffin  Doughnut/Day  Marginal Utility  per Doughnut 145220230415325610\begin{array} { | c | c | c | c | } \hline \text { Muffin/Day } & \begin{array} { c } \text { Marginal Utility } \\\text { per Muffin }\end{array} & \text { Doughnut/Day } & \begin{array} { c } \text { Marginal Utility } \\\text { per Doughnut }\end{array} \\\hline 1 & 45 & 2 & 20 \\\hline 2 & 30 & 4 & 15 \\\hline 3 & 25 & 6 & 10 \\\hline\end{array}
What is Jamie's optimal combination of muffins and doughnuts?


A) 1 muffin,6 doughnuts
B) 2 muffins,4 doughnuts
C) 3 muffins,2 doughnuts
D) 4 muffins,zero doughnuts

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions