Table 10-3
| | Ice Cream Cones | Lime Fizz Soda |
| Quantity | MU | MU |
| 1 | 30 | 40 |
| 2 | 25 | 35 |
| 3 | 20 | 26 |
| 4 | 15 | 18 |
| 5 | 10 | 15 |
| 6 | 5 | 7 |
Refer to Table 10-3. The table above shows Lee's marginal utility per dollar from consuming ice cream cones and cans of Lime Fizz Soda. The price of an ice cream cone is $2 and the price of Lime Fizz Soda is $1. Use this information to select the correct statement.
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We cannot determine how many ice cream cones and cans of Lime Fizz Soda will maximize Lee's utility because we are given only the marginal utility per dollar values. We also need to know the marginal utility for each quantity.
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We cannot determine how many ice cream cones and cans of Lime Fizz Soda Lee will consume without knowing what his income is.
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To maximize his utility Lee should consume 1 ice cream cone and 5 cans of Lime Fizz Soda.
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If Lee has an unlimited budget he will maximize his utility by buying only Lime Fizz Soda.
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