According to the utility-maximizing rule, if your last two purchases were $40 workout shorts and $80 running shoes, the marginal utility of the running shoes should be
A) twice the marginal utility from the workout shorts.
B) the same as the marginal utility from the workout shorts.
C) one-half the marginal utility from the workout shorts.
D) exactly equal to 80 units of utility.

Question

Quizplus · Accepted Answer

According to the utility-maximizing rule, the marginal utility per dollar spent should be equal for all goods. Since the running shoes cost twice as much as the workout shorts, their marginal utility should be twice that of the shorts to maintain equal marginal utility per dollar spent.

According to the Utility-Maximizing Rule, If Your Last Two Purchases