Refer to the information provided in Figure 6.15 below to answer the question that follows. Figure 6.15
-Refer to Figure 6.15. Why was Jason not maximizing his utility at point C?
A) He is not spending his entire budget.
B) His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog.
C) His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog.
D) He is maximizing his utility at point C.

Question

Refer to the information provided in Figure 6.15 below to answer the question that follows.  Figure 6.15
-Refer to Figure 6.15. Why was Jason not maximizing his utility at point C?
A) He is not spending his entire budget. 
B) His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog. 
C) His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog. 
D) He is maximizing his utility at point C.

Quizplus · Accepted Answer

At point C, Jason is spending his entire budget but his marginal utility per dollar spent on the last sandwich is lower than his marginal utility per dollar spent on his last hot dog. Therefore, he could increase his utility by consuming more hot dogs and fewer sandwiches, moving him towards point A or B on the budget line. Choice D is incorrect as he is not maximizing his utility at point C.

Refer to the Information Provided in Figure 6