Suppose you are consuming hot dogs and Cokes and believe you are receiving maximum total utility from the meal for your entire budget of $12. The price of a hot dog is $2 and the price of a Coke is $2. Which one of the following can you conclude?

Question

Answer

The total utility from hot dogs is maximized.

Answer

The marginal utilities from hot dogs and Cokes divided by the quantity of each good must be equal.

Answer

You are purchasing three hot dogs and three Cokes.

Answer

The total utilities from hot dogs and Cokes must be equal.

Answer

The marginal utilities from hot dogs and Cokes must be equal.

Crowdly

Suppose you are consuming hot dogs and Cokes and believe you are receiving maxim...

Want instant access to all verified answers on moodle.uleth.ca?