Question

At the point of maximal utility, what is the marginal utility of beans and sprouts?

1) Cannot be determined
2) Equal for both beans and sprouts
3) Higher for beans than sprouts
4) Higher for sprouts than beans

Answer 1

The marginal utility of beans and sprouts depends on individual preferences and budget constraints.

Step-by-step explanation:

The marginal utility of beans and sprouts depends on the individual's preferences and consumption budget constraint. In order to determine the marginal utility at the point of maximal utility, we can use the principle of comparing the ratio of the marginal utility to the price of good 1 with the ratio of the marginal utility to the price of good 2. At the optimal choice, these two ratios should be equal.

Therefore, without specific information about the individual's preferences and budget, we cannot determine the exact marginal utility of beans and sprouts. It could be equal, higher for beans, or higher for sprouts.