If a box of strawberries has a marginal utility to you of 30 and its price is $5, while a box of blueberries has a marginal utility to you of 10 and its price is $2, then if you were thinking of the next purchase
A) strawberries are a better buy than blueberries
B) blueberries are a better buy than strawberries
C) either blueberries or strawberries will do, you value them equally
D) neither will do because one has a higher marginal utility while the other has a lower price
E) you should buy both strawberries and blueberries

Question

Quizplus · Accepted Answer

The marginal utility per dollar for strawberries is 30/5 = 6, while for blueberries it is 10/2 = 5. Since the marginal utility per dollar is higher for strawberries, they are a better buy.

If a Box of Strawberries Has a Marginal Utility to You