Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A → B → C → D
B
B → A → C → D
C
C → D → A → B
D
D → C → B → A
Understanding the Answer
Let's break down why this is correct
Answer
To calculate the Marginal Benefit per Dollar and optimize spending, start by determining the marginal benefit of each good. This means figuring out how much extra satisfaction or value you get from consuming one more unit of each item. Next, divide the marginal benefit by the price of each good to find out how much benefit you get for each dollar spent. After calculating this, compare the Marginal Benefit per Dollar across the different goods to see which one gives you the most value for your money. Finally, make a purchase based on the highest Marginal Benefit per Dollar to ensure you are getting the best deal possible.
Detailed Explanation
First, you find out how much extra happiness or benefit you get from each good. Other options are incorrect because This option suggests starting with the price before knowing the benefit; This option puts comparison before calculating benefits.
Key Concepts
Marginal Benefit Calculation
Consumer Optimization
Utility Maximization
Topic
Marginal Benefit Calculation
Difficulty
medium level question
Cognitive Level
understand
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