Antonio derives more utility from spending an additional dollar on boots than on gloves.We can assume that:
A)the marginal utility per dollar spent on boots is greater than the marginal utility per dollar spent on gloves.
B)the marginal utility per dollar spent on boots is equal to the marginal utility per dollar spent on gloves.
C)the marginal utility per dollar spent on boots is less than the marginal utility per dollar spent on gloves.
D)boots cost less than gloves.

Question

Quizplus · Accepted Answer

Since Antonio derives more utility from spending an additional dollar on boots than on gloves, we can infer that the marginal utility per dollar spent on boots is greater than the marginal utility per dollar spent on gloves. Therefore, choice A is the best answer.

Antonio Derives More Utility from Spending an Additional Dollar on Boots