Jamie's marginal utility from muffins and from doughnuts (in utils) is shown below. Jamie spends a total of $8 on muffins and/or doughnuts every morning. The price of each muffin is $2 and the price of each doughnut is $1. $$\begin{array} { | c | c | c | c | }
\hline \begin{array} { c }
\text { Muffins } \
\text { Per Day }
\end{array} & \begin{array} { c }
\text { Marginal Utility } \
\text { Per Muffin }
\end{array} & \begin{array} { c }
\text { Doughnuts } \
\text { Per Day }
\end{array} & \begin{array} { c }
\text { Marginal Utility } \
\text { Per Doughnut }
\end{array} \
\hline 1 & 40 & 2 & 20 \
\hline 2 & 30 & 4 & 15 \
\hline 3 & 20 & 6 & 10 \
\hline
\end{array}$$ If Jamie consumes 3 muffins a day, then what is her marginal utility per dollar spent on the third muffin?
A)10
B)20
C)30
D)40

Question

Jamie's marginal utility from muffins and from doughnuts (in utils) is shown below. Jamie spends a total of $8 on muffins and/or doughnuts every morning. The price of each muffin is $2 and the price of each doughnut is $1. $$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Muffins } \
\text { Per Day }
\end{array} & \begin{array} { c } 
\text { Marginal Utility } \
\text { Per Muffin }
\end{array} & \begin{array} { c } 
\text { Doughnuts } \
\text { Per Day }
\end{array} & \begin{array} { c } 
\text { Marginal Utility } \
\text { Per Doughnut }
\end{array} \
\hline 1 & 40 & 2 & 20 \
\hline 2 & 30 & 4 & 15 \
\hline 3 & 20 & 6 & 10 \
\hline
\end{array}$$ If Jamie consumes 3 muffins a day, then what is her marginal utility per dollar spent on the third muffin?
A)10
B)20
C)30
D)40

Quizplus · Accepted Answer

The marginal utility per dollar spent on the third muffin is calculated by dividing the marginal utility of the third muffin (20 utils) by the price of a muffin ($2), which equals 10 utils per dollar.

Jamie's Marginal Utility from Muffins and from Doughnuts (In Utils)