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

-A ten-year-old boy spent his allowance on a soccer ball and a baseball glove. He said he could not be happier buying anything else. The price of the ball was $5, while the price of the glove was $10. If the marginal utility he received from the ball was 15 utils, then:
A)the marginal utility he received from expenditure on the glove was 3 utils.
B)the marginal utility he received from expenditure on the glove was 30 utils.
C)the total utility per dollar he received from expenditure on the glove was 3 utils.
D)the total utility per dollar he received from expenditure on the glove was 10 utils.
E)the marginal utility he received from the expenditure of the glove was 10 utils

Question

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3
 
-A ten-year-old boy spent his allowance on a soccer ball and a baseball glove. He said he could not be happier buying anything else. The price of the ball was $5, while the price of the glove was $10. If the marginal utility he received from the ball was 15 utils, then:
A)the marginal utility he received from expenditure on the glove was 3 utils. 
B)the marginal utility he received from expenditure on the glove was 30 utils. 
C)the total utility per dollar he received from expenditure on the glove was 3 utils. 
D)the total utility per dollar he received from expenditure on the glove was 10 utils. 
E)the marginal utility he received from the expenditure of the glove was 10 utils

Quizplus · Accepted Answer

If the marginal utility he received from the ball was 15 utils and the price of the ball was $5, then the marginal utility per dollar spent on the ball was 15/5 = 3 utils per dollar. 
Assuming the total utility obtained from the purchase of both goods is maximized, the next dollar he spends on the baseball glove should bring the same utility as the last dollar he spent on the soccer ball, so the marginal utility per dollar spent on the glove should also be 3 utils per dollar. 
Therefore, the marginal utility he received from expenditure on the glove was 3 utils (choice A is incorrect), and the total utility per dollar he received from expenditure on the glove was also 3 utils (choices C and D are incorrect). 
Since the total utility he received from the purchase of both goods was maximized, this means that the next dollar he spends on either good would give him less utility than the previous dollar, so the marginal utility he received from the expenditure of the glove was less than 15 utils (choice E is incorrect). 
Thus, the only correct choice is B - the marginal utility he received from expenditure on the glove was 30 utils (3 utils per dollar x $10 spent on the glove).

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