Question

Suppose that at the baseball game, you consumed 3 hot dogs (each priced at $5) and 4 sodas (each priced at $3). the 3rd hot dog provided a marginal utility of 20, while the 4th soda provided a marginal utility of 15. in order to maximize utility, should you have changed your consumption?

Answer 1

In such circumstances, I would have changed my consumption. I'd have stopped at the 3rd hot dog because consuming something beyond that would decrease my marginal utility, from 20 to 15. It's better to shop at the third hot dog.