Jason is trying to decide whether to buy a bagel or a muffin for ...

[BrownTown3]

Jason is trying to decide whether to buy a bagel or a muffin for breakfast. The bagel costs 0.50 and has a marginal utility of 5 . The muffin costs 1 and has a marginal utility of 20 . Which should he buy and why?
 a. The muffin, because it has a higher marginal utility
  b. The muffin, because it has a lower marginal utility
  c. The bagel, because it costs less
  d. The bagel, because it has a higher marginal utility per dollar
  e. The muffin, because it has a higher marginal utility per dollar

Question 2

If marginal cost is increasing then:
 a. marginal product must be increasing.
 b. average variable cost must be increasing.
  c. average total cost must be increasing.
 d. none of the above must necessarily be true.

[braelync]

Answer to Question 1

e

Answer to Question 2

d

[BrownTown3]

Excellent

[kthug]

TYSM