Purchase Solution

# You go to an "all-you-can-eat" buffet. If you maximize utility, the marginal utility of the last bite that you eat will be

Not what you're looking for?

You go to an "all-you-can-eat" buffet. If you maximize utility, the marginal utility of the last bite that you eat will be
a. equal to the price of the buffet
b. as high as possible
c. zero
d. dependent on how much you like the buffet

Suzy knows she has maximized her utility, because she is on her budget constraint and
a. consumption of good X equals consumption of good Y
b. what is spent on good X equals what is spent on good Y
c. MUx/Px = MUy/Py
d. MUx = MUy

Benny spends all his money buying wine and cheese. The marginal utility of the last bottle of wine is 60, and the marginal utility of the last block of cheese is 30. The price of wine is \$3, and the price of cheese is \$2. Benny
a. is buying wine and cheese in the utility-maximizing amounts
b. should buy more wine and less cheese
c. should buy more cheese and less wine
d. is spending too much money on wine and cheese

I am so confused with this question I think it is B

##### Solution Preview

You go to an "all-you-can-eat" buffet. If you maximize utility, the marginal utility of the last bite that you eat will be
a. equal to the price of the buffet (correct)

Suzy ...

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.