If the price of pecan rolls is $2, the price of a gyro is $6, and the marginal utility of pecan rolls is 12, then the marginal utility of gyros for a consumer purchasing the optimal consumption bundle of pecan rolls and gyros is 36.

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Quizplus · Accepted Answer

The marginal utility of a good is the additional utility gained from consuming one more unit of that good. The optimal consumption bundle is the combination of goods that maximizes the consumer's total utility. At the optimal consumption bundle, the marginal utility of each good is equal to the price of that good divided by the marginal utility of the other good. In this case, the price of pecan rolls is $2, the price of a gyro is $6, and the marginal utility of pecan rolls is 12. Therefore, the marginal utility of gyros for a consumer purchasing the optimal consumption bundle of pecan rolls and gyros is 36.

If the Price of Pecan Rolls Is $2, the Price