Rosenbaum is purchasing products C and D in utility-maximizingamounts. If the pr
ID: 1251058 • Letter: R
Question
Rosenbaum is purchasing products C and D in utility-maximizingamounts. If the price ofC is $4 and the price of D is $2,the: A.the marginal utility of D is twice that of C. B.the marginal utility of D is the same as that of C. C.the marginal utility of C is twice that of D. D.the marginal utility of C is four times that of D. Rosenbaum is purchasing products C and D in utility-maximizingamounts. If the price ofC is $4 and the price of D is $2,the: A.the marginal utility of D is twice that of C. B.the marginal utility of D is the same as that of C. C.the marginal utility of C is twice that of D. D.the marginal utility of C is four times that of D.Explanation / Answer
C. The formula for utility maximization is (MUc /Pc) = (MUD / PD) By simplemath, you can see if the price of C is twice as high as D, themarginal utility must also be twice as high for the equality to betrue.
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