Fernando allocates his lunch money between pizza and Coke. A slice of pizza costs $1.50,...
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Fernando allocates his lunch money between pizza and Coke. A slice of pizza costs $1.50, and a can of Coke costs $1. The marginal utility of the last slice of pizza Fernando ate that day was 30 units, and the marginal utility of the last can of Coke was 25 units. If Fernando decides to spend all of his lunch money, then identify the correct statement'
. Fernando could have increased his total utility by purchasing more pizza and the same quantity of Coke.
b. Fernando's total utility would have been greater if he had purchased more pizza and less Coke.
c. Fernando allocates his money so as to maximize his total utility.
d. Fernando could have increased his total utility by purchasing more Coke and the same quantity of pizza.
e. Fernando's total utility would have been greater if he had purchased more Coke and less pizza
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