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Suppose That Fernando Allocates His Lunch Money to Pizza and Coke

Question 115

Multiple Choice

Suppose that Fernando allocates his lunch money to pizza and Coke. A Coke costs $1 and a slice of pizza costs $1.50. The marginal utility of the last slice of pizza Fernando ate today was 30, and the marginal utility of his last Coke was 25. Fernando spent all of his lunch money. From this information, we can conclude that:


A) Fernando allocated his money in a way that maximized his total utility.
B) Fernando's total utility would have been higher if he had purchased more Coke and less pizza.
C) Fernando's total utility would have been higher if he had purchased more pizza and less Coke.
D) Fernando could have increased his total utility by purchasing more Coke but the same quantity of pizza.
E) Fernando could have increased his total utility by purchasing more pizza but the same quantity of Coke.

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