Utility Maximization Nate is currently spending his entire budget on two goods: food and entertainment. He was willing to pay $2 for the last unit of food he purchased and $2,000 for the last unit of entertainment he purchased. Which of the following is the best explanation of why he is willing to pay so much more for entertainment? Choose 1 answer: Nate is irrational and doesn't understand that food is a necessity and entertainment is not. Nate's total utility from entertainment is higher than his total utility from food Nate's total utility from food is higher than his total utility from entertainment. Nate's marginal utility from food is higher than his marginal utility of entertainment
Utility Maximization Nate is currently spending his entire budget on two goods: food and entertainment. He was willing to pay $2 for the last unit of food he purchased and $2,000 for the last unit of entertainment he purchased. Which of the following is the best explanation of why he is willing to pay so much more for entertainment? Choose 1 answer: Nate is irrational and doesn't understand that food is a necessity and entertainment is not. Nate's total utility from entertainment is higher than his total utility from food Nate's total utility from food is higher than his total utility from entertainment. Nate's marginal utility from food is higher than his marginal utility of entertainment
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning