Question

Your 3rd grade lunch buddy is willing to take a container of apple sauce from your lunch box in exchange for something in his or her lunch box. Your options are: Food item Value to you in number of applesauce containers 1 orange 1 applesauce container 1 Jello cube (lime flavored) 1.5 applesauce containers 1 cookie 2 applesauce containers. Which should you choose to maximize your utility? a. the orange b. the Jello cube c. the cookie d. None of the above; you will be happiest eating your applesauce.

Answer 1

The correct answer would be - option C.

Step-by-step explanation:

As it is clearly stated that value of the food items in comparison to the apple sauce container as follow :

1 orange = 1 applesauce container

1 Jello cube (lime flavored) = 1.5 applesauce containers

1 cookie = 2 applesauce containers

In the question i is asked that which option you should choose to maximize utility, on the basis of food value one can easily say that 1 cookie has more food value and it will definitely increase the utility more than any other so answer should be cookie.

Thus, the correct answer is - option C.