Final answer:
The bar with the greatest marginal utility is the one that provides the most additional satisfaction per unit of money spent.
Step-by-step explanation:
Economics - College Level
When considering the consumption of different bars, the one that yields the greatest marginal utility is the one that provides the most additional satisfaction per unit of money spent. To determine this, you can compare the ratio of the marginal utility to the price of each bar. The bar with the highest ratio will have the greatest marginal utility.
For example, let's say there are three bars priced at $1, $2, and $3, and their respective marginal utilities are 10, 15, and 12. The ratio of marginal utility to price for each bar is 10/1 = 10, 15/2 = 7.5, and 12/3 = 4. The bar with the highest ratio of 10 has the greatest marginal utility.
- Calculate the marginal utility for each bar.
- Calculate the price of each bar.
- Divide the marginal utility by the price for each bar.
- Compare the ratios and identify the bar with the highest ratio.