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Question
| Quantity of Magazines/Wk | Total Utility | Quantity of Paperback Books/Wk | Total Utility |
| 0 | 0 | 0 | 0 |
| 1 | 50 | 1 | 300 |
| 2 | 90 | 2 | 500 |
| 3 | 120 | 3 | 600 |
| 4 | 130 | 4 | 650 |
| 5 | 132 | 5 | 675 |
| 6 | 132 | 6 | 680 |
According to utility theory, consumer purchase decisions are made such that
A) the value of the ratio of marginal utility to price for the last units purchased and consumed is equal.
B) the difference between the value of the marginal utility of the last unit purchased and the price paid is maximized.
C) the total utility of the last unit purchased is equal to the price of that unit.
D) the total utility from consuming the good is less than the marginal utility of the last unit consumed.
Answer
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