Jason Is Trying to Decide Whether to Buy a Bagel

question 77

Multiple Choice

Jason is trying to decide whether to buy a bagel or a muffin for breakfast.The bagel costs $.50 and has a marginal utility of 5.The muffin costs $1 and has a marginal utility of 20.Which should he buy,and why?

• A)The muffin,because it has a higher marginal utility
• B)The muffin,because it has a lower marginal utility per dollar
• C)The bagel,because it costs less
• D)The bagel,because it has a higher marginal utility per dollar
• E)The muffin,because it has a higher marginal utility per dollar

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Definitions:

Complements

Goods or services that are consumed together because the use of one enhances the value of the other.

Cholesterol

A waxy, fat-like substance found in all cells of the body, necessary for making hormones, vitamin D, and substances that help digest foods, but high levels can lead to health issues.

Cattle Feed

involves materials and nutritional supplies consumed by cattle, aiming at ensuring proper growth, health, and productivity of the livestock.

Buyer Tastes

Preferences and inclinations of consumers that influence their purchasing behavior.