If farmer sam macdoanld can produce 200 pounds of cabbages and 0 pounds of patotes or 0 pound of cabbes and 100 pounds of potato
1 answer:
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Answer:
Option (a) is correct.
Explanation:
Given the marginal utility per dollar for the two products as follows:
All the individuals wants to maximize their utility that is obtained from the consumption of goods. We can see that marginal utility per dollar of product A is higher than the marginal utility per dollar of product B which means that this consumer should purchase more quantity of product A and less quantity of product B.
It is going on until the point at which marginal utility per dollar of both the products becomes equal.