Tyrell Has $50 to Spend on Good a and Good

question 117

Multiple Choice

Tyrell has $50 to spend on good A and good B per week. The price of good A is $5 and that of good B is $4. He buys six units of good A and five units of good B. The marginal utility of the sixth unit of A is 25 units, and the marginal utility of the fifth unit of B is 20 units. Which of the following is true?​

• A)He is maximizing his utility.
• B)His last dollar spent on good A exceeds the last dollar spent on good B.
• C)He is not maximizing his utility and should buy more of A.
• D)He is not maximizing his utility and should buy more of B.
• E)He is not maximizing his utility because he is not spending all of his income.

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