204k views
4 votes
Benny spends all of his money buying wine and cheese. Diminishing marginal utility applies to both goods. The marginal utility of the last bottle of wine he bought is 60, and the marginal utility of the last block of cheese he bought is 30. The price of wine is $3, and the price of cheese is $2. Benny A. is spending too much money on wine and cheese. B. should buy more wine and less cheese C. should buy more cheese and less wine. D is buying wine and cheese in the utility-maximizing amounts QUESTION 28 3.85 pointsSave Answ Suppose ivy buys only two things, books and coffee, and receives the same satisfaction from the last book bought as she did from the last coffee bought. Books cost twice as much as coffe, and she has spent all of her money. Diminighing marginal utility applies to both goods. If she is trying to maximize her utility A vy should buy more books and less coffee B hy should buy more coffee and fewer books C vy should buy more coffee and more books. yis making the right choice

User Sefakilic
by
3.7k points

1 Answer

6 votes

Answer:

B) should buy more wine and less cheese

Step-by-step explanation:

User Harmic
by
5.2k points