Question

Jones buys two goods, A and B. Currently, Jones receives marginal utility of 24 utils from good A and pays a price of $1.50 per unit. Jones receives a marginal utility of 43 utils from good B and pays a price of $1.99 per unit. Jones receives __________ per dollar from good B as he does from good A.

Answer 1

The correct answer is: more marginal utility.

Step-by-step explanation:

The marginal utility is the utility that we obtain for the consumption of an additional unit of a good or service.

The marginal utility (MU) refers to the concept of "additional" or "extra", it is the utility that is added or added when we consume a unit more than a good or service.

It depends on consumer preferences, which are not always known. However, regardless of its form or level, economists usually agree that it is generally true that as the consumption of an additional unit increases, the profit we obtain is falling. This phenomenon was reflected in the so-called "law of diminishing marginal utility".