A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table. Number of Items MU of Chocolates MU of Hard Candies 60 150 50 140 40 120 30 100 20 80 10 70 5 50 0 20 1 2 3 4 5 8

Based on taste and preference alone, which good does the child prefer? One cannot tell from the given data. The child equally likes chocolates and hard candies. chocolates hard candies

A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table. Number of Items MU of Chocolates MU of Hard Candies Based on taste and preference alone, which good does the child prefer? One cannot tell from the given data. The child equally likes chocolates and hard candies. chocolates hard candies