Question

Crackerjacks cost twice as much as Doritos. Fred maximizes utility by buying eight boxes of Crackerjacks and some number of bags of Doritos. If the last box of Crackerjacks gives Fred 100 units of utility, you can conclude that: A. the total utility of the bags of Doritos Fred bought is 200 units. B. the marginal utility of the last bag of Doritos Fred bought is 50 units. C. Fred has also bought 16 bags of Doritos. D. Fred has also bought four bags of Doritos.

Answer 1

Answer:

The best answers is "B"

the marginal utility of the last bag of Doritos Fred bought is 50 units.

Explanation:

According to the law of diminishing marginal utility, after some point the more we consume of something, the less each additional unit adds to our satisfaction.

the marginal utility of the last bag of Doritos Fred bought is 50 units because Crackerjacks cost twice as much as Doritos.

Answer 2

Answer:

B. the marginal utility of the last bag of Doritos Fred bought is 50 units.

Explanation:

Base on the scenario been described in the question, where Crackersjacket cost twice the as much the amount of much of Doritos, law of diminishing makes us to understand this, and it is used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested as seen in the scenario, by the cost of Crackersjacket.