If good A has a marginal utility of 30 and a price of $5, and good B has a marginal utility of 10 and a price of $2, then:

A) good A is a better buy than good B.

B) good B is a better buy than good A.

C) goods A and B are of equal value to this consumer.

D) neither good A nor B is worth the money.

E) goods A and B should both be purchased.

Question

If good A has a marginal utility of 30 and a price of $5, and good B has a marginal utility of 10 and a price of $2, then:

A) good A is a better buy than good B.
		
B) good B is a better buy than good A.
		
C) goods A and B are of equal value to this consumer.
		
D) neither good A nor B is worth the money.
		
E) goods A and B should both be purchased.

anonymous · Answer

in order to understand the choice ( better buy than the other ) we have to divide the MU per unit price . so , for the good A : 30/5=6 
For the good B : 10/2=5 
definitely , the good  A is better than the good B