The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-To decide which of the two goods is a better buy, a consumer should compare the products' _____.
A)marginal utilities
B)total utilities
C)marginal utilities per dollar
D)total utilities per dollar
E)disutility

Question

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3
 
-To decide which of the two goods is a better buy, a consumer should compare the products' _____.
A)marginal utilities 
B)total utilities 
C)marginal utilities per dollar 
D)total utilities per dollar 
E)disutility

Quizplus · Accepted Answer

In order to determine which product is a better buy, the consumer should compare the marginal utilities per dollar of each product. This will give them the most bang for their buck and ensure that they are getting the most utility for their money. Total utilities and disutility are not as relevant in making a purchasing decision, so choices A, B, and E can be eliminated. D is also not the best choice as it does not take into account the marginal utility per dollar.

The Below Table Shows the Average Utility (In Utils) Obtained