Question

Marginal Utility per Dollar IV. If Ashyra has $40 to spend on potatoes and clams, then the utility-maximizing combination is _____ pound(s) of clams and _____ pound(s) of potatoes.

Answer 1

The information about Ashyra's marginal utility is missing, so I looked for a similar question and found the attached image:

If Ashyra has $40 to spend on potatoes and clams, then the utility-maximizing combination is 2 pound(s) of clams and 6 pound(s) of potatoes.

You have to obtain a combination were both marginal utilities per dollar are similar:

1 pound of clams and 4 pounds of tomatoes yield a total utility = 51.8 utils, at this level the marginal utility per dollar of clams is 1.88 and 1.75 for potatoes (not equal, but similar). But at this level, Ashyra will only spend $24, so she can buy more goods.

2 pounds of clams and 6 pounds of tomatoes yield a total utility = 72 utils, at this level the marginal utility per dollar of clams is 1.25 and 1.13 for potatoes (not equal, but similar). At this level, Ashyra will spend $40, so she can't buy more goods.