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.
Assorted bagel
Peanut Butter Breakfast
Customize your muffin recipe
Breakfast eggs with avocado
Breakfast eggs and bacon
Dominican breakfast