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Erica cannot decide whether to buy a packet of potato chips, cheese whirls, or nacho chips, whose marginal utilities are 50, 36, and 42, respectively.
Erica cannot decide whether to buy a packet of potato chips, cheese whirls, or nacho chips, whose marginal utilities are 50, 36, and 42, respectively. The prices of the snacks are $1.25, $0.80, and $1.20, respectively.
Calculate the MU per dollar spent for each of the three products.
i.Chips____________
ii.Cheese whirls____________
iii.Nachos____________
If Erika can afford to buy only one packet, which should she buy?_______________
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