George spends all his pocket money on candies and potato chips every month. The last bag of
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George spends all his pocket money on candies and potato chips every month. The last bag of candies George consumes yields $80 in marginal benefits, whereas the last bag of potato chips yields $30. George’s satisfaction is maximized under which of the following situations?
Explain your answer.
a. The price of candies is $12 per bag, and the price of potato chips is $3 per bag.
b. The price of candies is $10 per bag, and the price of potato chips is $5 per bag.
c. The price of candies is $16 per bag, and the price of potato chips is $6 per bag.
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