Joseph Consumes Pizza and Soda

question 165

Essay

Joseph consumes pizza and soda.He is currently consuming three units of pizza and two units of soda.The price of pizza is $5 and the price of soda is $1.If he is consuming the optimal consumption bundle and his marginal utility of pizza is 50, then his marginal utility of soda is:
A.50.
B.10.
C.5.
D.impossible to determine unless you know Joseph's income.

---

Definitions:

Differential Cost

The difference in total cost between two alternatives, used in decision-making processes.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period they are incurred.

Discretionary Cost

Costs that are not essential for the operation of a home or business and can be adjusted or eliminated depending on financial circumstances.

Condensed Income Statement

A simplified financial statement that summarizes revenues, costs, and expenses to show a company's net income over a specific period.