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:

Voluntary Behavior

Refers to actions that are performed consciously and with intention by an individual.

Survival

The act of continuing to live or exist, often despite hardship or danger.

Mother's Milk Scent

The unique odor of breast milk from a baby's mother, which plays a significant role in the bonding process and may help in stimulating the infant's appetite and sense of security.

Infancy

Infancy is the early stage of a child's life, starting from birth up to 2 years, characterized by rapid physical growth and cognitive development.