contestada

Justin Field just stopped at the Exxon station on the way to campus and bought
four Butterfinger candy bars, two 20-ounce bottles of grape-watermelon
Snapple, and 10 gallons of gas. His total marginal-utility-to-price ratio for each
of the items is: 3.21 for the Butterfingers, 4.8 for the Snapples, and 5.7 for
gallons of gas. Explain why this set of purchases did not maximize his utility and
how could he have increased his utility.

Respuesta :

Parrain

Based on Justin's marginal-utility-to-price ratio, we can infer that he did not maximize his utility but he can do so by consuming more candy bars and less juice and gas.

How can Justin Field maximize his utility?

For the purchases to maximize his utility, the marginal-utility-to-price ratio for all the goods purchased need to be equal.

In order to achieve this, Justin needs to buy less juice and gas as they have high ratios, and focus on consuming more candy until all the goods have the same marginal-utility-to-price ratio.

Find out more on marginal-utility-to-price ratio at https://brainly.com/question/12032205.

#SPJ1

Otras preguntas