Question

If Jane is not maximizing her utility with the original purchase combination, remembering the Law of Diminishing Marginal Utility, would she be better off buying just one more order of fries? Explain your reasoning and show any calculations.

Answer 1

Using the Law of Diminishing Marginal Utility, Jane would not be better off buying one more fry, since the marginal utility she obtains from the fries are lower when compared to the chicken sandwich; therefore, she would be better off ordering another chicken sandwich