Answer:
Option C. 5 strawberries and 5 apples
Step-by-step explanation:
The given question is incomplete ; complete question attached herewith.
Cost of strawberries and apples = $1 and $2
Marginal utility for strawberries
Strawberry consumed Total utility Marginal utility
0 0 0
1 7 (7 - 0) ÷ 1 = 7
2 13 (13 - 7) ÷ 1 = 6
3 18 (18 - 13) ÷ 1 = 5
4 22 ( 22 - 18) ÷ 1 = 4
5 25 (25 - 22) ÷ 1 = 3
6 27 (27 - 25) ÷ 1 = 2
7 28 (28 - 27) ÷ 1 = 1
For apples,
Apples consumed Total utility Marginal utility
0 0 0
1 14 (14 - 0) ÷ 1 = 14
2 26 (26 - 14) ÷ 1 = 12
3 36 (36 - 26) ÷ 1 = 10
4 44 (44 - 36) ÷ 1 = 12
5 50 (50 - 44) ÷ 1 = 6
6 54 (54 - 50) ÷ 1 = 4
7 56 (56 - 54) ÷ 1 = 2
Now from the formula,
[tex]\frac{\text{Marginal utility of strawberry}}{\text{Price of strawberry}}=\frac{\text{Marginal utility of apples}}{\text{Price of apples}}[/tex]
From the table we find at strawberry consumed = 5 , and apples consumed = 5
The ratio of marginal utility and price are same.
[tex]\frac{\text{Marginal utility of strawberry}}{\text{Price of strawberry}}=\frac{3}{1}=3[/tex]
[tex]\frac{\text{Marginal utility of apples}}{\text{Price of apples}}=\frac{6}{2}=3[/tex]
Therefore, Option C. 5 strawberry and 5 apples will be the answer.
