Answer to Question #103380 in Microeconomics for supt

Question #103380
Where did you get the 1.5 in the "marginal utility per dollar for the doughnut is greater than the marginal utility per dollar for the cup of coffee (11>1.5)"? Shouldn't it be 11 > 3.5?
1
Expert's answer
2020-02-21T09:52:16-0500

This is because donuts have a higher marginal utility per dollar for the first nine purchases but at the tenth purchase the marginal utility per dollar for a donut is less than that of a coffee making him purchase a coffee


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