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Benny spends all of his money buying wine and cheese. Diminishing marginal utility applies to both goods. The marginal utility of the last bottle of wine he bought is 60, and the marginal utility of the last block of cheese he bought is 30. The price of wine is $3, and the price of cheese is $2. Benny: should buy more cheese and less wine. is spending too much money on wine and cheese. is buying wine and cheese in the utility-maximizing amounts. should buy more wine and less cheese.

Respuesta :

Answer: should buy more wine and less cheese

Explanation:

Marginal utility is the added satisfaction a consumer gets from consuming one more unit of a good or service.

Benny should consume more wine because he has a higher marginal utility for wine when compared with cheese.