Asked by
Donisha Williams
on Oct 27, 2024Verified
At Frankie's Buy-the-Slice Pizza,Brian eats eight slices of pizza.He says that,because pizza is $2 per slice,the utility-maximizing decision is to eat until your marginal utility per dollar is zero.Brian's explanation is correct.
Marginal Utility per Dollar
The additional satisfaction or utility gained from consuming an additional unit of a good or service per unit of currency spent.
- Gain insight into the fundamentals of utility maximization and rational consumer behavior.
- Understand the influence of utility in determining the best consumption choices when faced with budget restrictions.
Verified Answer
HB
Learning Objectives
- Gain insight into the fundamentals of utility maximization and rational consumer behavior.
- Understand the influence of utility in determining the best consumption choices when faced with budget restrictions.
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