Learning Path
Question & Answer
Choose the Best Answer
The marginal utility per dollar spent on both fruits is equal.
Apples and oranges provide the same total utility.
The price of oranges is lower than the price of apples.
The consumer prefers oranges over apples and buys them in excess.
Understanding the Answer
Let's break down why this is correct
Buying four apples and four oranges gives the best overall happiness because the extra satisfaction you get from each dollar spent on both fruits is the same. Other options are incorrect because Thinking that apples and oranges give identical total happiness is incorrect; Saying oranges are cheaper is not the main reason for the optimal mix.
Key Concepts
Optimal Purchase Combinations
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Deep Dive: Optimal Purchase Combinations
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Definition
Optimal purchase combinations refer to the most efficient mix of goods a consumer can buy based on marginal utility per dollar. By comparing the marginal utility of different goods to their prices, consumers aim to maximize total utility within budget constraints. Understanding optimal purchase combinations helps individuals make rational consumption choices.
Topic Definition
Optimal purchase combinations refer to the most efficient mix of goods a consumer can buy based on marginal utility per dollar. By comparing the marginal utility of different goods to their prices, consumers aim to maximize total utility within budget constraints. Understanding optimal purchase combinations helps individuals make rational consumption choices.
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