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The following table shows Pierre's utility for bagels and cider. Quantity Bagels: Marginal Utility Cider: Marginal Utility 1 20 20 2 10 16 3 8
The following table shows Pierre's utility for bagels and cider.
Quantity | Bagels: Marginal Utility | Cider: Marginal Utility |
1 | 20 | 20 |
2 | 10 | 16 |
3 | 8 | 12 |
4 | 3 | 9 |
5 | 1 | 4 |
Refer to the above information to answer this question. If Pierre has a budget of $12 and the price of each bagel and each cider are $2, what will be his optimal purchase based on MU for each consumption item?
Question 20Select one:
A.3 bagels and 3 ciders.
B.4 bagels and 2 ciders.
C.1 bagel and 5 ciders.
D.2 bagels and 4 ciders.
E.5 bagels and 1 ciders.
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