6) A consumer has to choose the optimal number of slices of pizza and bottles of water to purchase. Which of the following is not a necessarycondition for his or her chosen consumption bundle to be optimal?OOOHis or her budget constraint has to hold.Marginal utility (MU) on the two goods has to be the same.Marginal utility per dollar spent on the two goods has to be equal.The total he or she spends on slices of pizza plus the total he or she spends on bottles of water must be lower than or equal to the total amount he orshe has allocated to spend on these two goods.

Answered: A consumer has to choose the optimal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6) A consumer has to choose the optimal number of slices of pizza and bottles of water to purchase. Which of the following is <em>not</em> a necessary
condition for his or her chosen consumption bundle to be optimal?
OOO
His or her budget constraint has to hold.
Marginal utility (MU) on the two goods has to be the same.
Marginal utility per dollar spent on the two goods has to be equal.
The total he or she spends on slices of pizza plus the total he or she spends on bottles of water must be lower than or equal to the total amount he or
she has allocated to spend on these two goods.

Expert Solution

Step 1

Optimal decisions will be reached at the margin. The main approach on making the best decision on consumption will be to maximize utility by adopting rule of equal marginal utility per dollar spent. An indifference curve depicts the combinations of bundles of consumption that provide the consumer the same utility.

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