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Benny spends all of his money buying wine and cheese. The marginal utility of the last bottle of wine he bought is 60, and the marginal utility of the last block of cheese he bought is 30. The price of wine is $3, and the price of cheese is $2. Benny: Group of answer choices is buying wine and cheese in the utility-maximizing amounts. should buy more wine and less cheese. should buy more cheese and less wine. is spending too much money on wine and cheese.

Respuesta :

Answer:

should buy more wine and less cheese

Explanation:

Marginal utility is the additional utility derived from consuming one more unit of a good

The consumption decision is to consume more units of a good that gives the higher utility per good.  

Marginal utility per good = marginal utility / price of the good  

Wine = 60 / $3 = 20

Cheese = 30 / $2 = 15

Wine has a higher utility per good when compared with cheese. Benny should buy more wine and less cheese

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