QUESTION 15 Jason is trying to decide whether to buy a bagel or a muffin for bre
ID: 1193251 • Letter: Q
Question
QUESTION 15
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?
The bagel, because it has a higher marginal utility per dollar
The muffin, because it has a lower marginal utility
The bagel, because it costs less
The muffin, because it has a higher marginal utility
The muffin, because it has a higher marginal utility per dollar
a.The bagel, because it has a higher marginal utility per dollar
b.The muffin, because it has a lower marginal utility
c.The bagel, because it costs less
d.The muffin, because it has a higher marginal utility
e.The muffin, because it has a higher marginal utility per dollar
Explanation / Answer
d The muffin, because it has a higher marginal utility
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