The Below Table Shows the Average Utility (In Utils) Obtained

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-Jason is trying to decide whether to buy a bagel or a muffin for breakfast. The bagel costs $0.50 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
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