Suppose That Each Week Henry Buys 12 Peaches and 3

question 128

Multiple Choice

Suppose that each week Henry buys 12 peaches and 3 apples at his local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:

• A)Henry is not maximizing his utility.
• B)if Henry is maximizing his utility, then his marginal utility from the 12^th peach he buys must be greater than his marginal utility from the 3^rd apple he buys.
• C)if Henry is maximizing his utility, then his marginal utility from the 12^th peach he buys must equal his marginal utility from the 3^rd apple he buys.
• D)for Henry the law of diminishing marginal utility does not apply to peaches.

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