Basil Is Maximizing His Utility from Consuming Tea and Crumpets

question 6

Multiple Choice

Basil is maximizing his utility from consuming tea and crumpets.If the marginal utility of his last cup of tea was 24 units of utility and that of his last crumpet was 6 units of utility, which of the following is true?

• A)The price of tea is six times the price of crumpets.
• B)The price of crumpets is four times the price of tea.
• C)The prices of tea and crumpets are equal.
• D)The price of tea is four times the price of crumpets.
• E)The MU of the next cup of tea is less than the MU of the next crumpet.

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Definitions:

Jean Watson

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