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Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $0.60 per bottle and $0.40 per bag, respectively. It can be concluded that

Respuesta :

Mrs. Arnold should spend more on soda and less on pretzels.

What is diminishing marginal utility?

  • Reduced marginal utility the idea that a person's utility decreases as they accumulate more of something over time.
  • As consumption increases, satisfaction declines.

Which of the following is correct if marginal utility is diminishing?

  • Total utility will rise if marginal utility is decreasing and is positive.

What is marginal utility?

  • Insignificant Utility the difference in overall utility brought on by consuming one more unit of a particular commodity.

What is diminishing marginal utility example?

  • The phenomenon known as diminishing marginal utility describes how each extra unit of gain results in an ever-smaller rise in subjective value.
  • For instance, three sweet bites are preferable to two, but the twentieth bite does not significantly improve the experience past the nineteenth (and could even make it worse).

Learn more about marginal utility here:

https://brainly.com/question/27960517

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