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Question
The following table presents Alfred's marginal utility for each good while exhausting his income. Fill in the remaining column in the table. If the price of tuna is twice the price of peanut butter, at what consumption bundle in the table is Alfred maximizing his level of satisfaction? Which commodity bundle entails the largest level of tuna fish consumption?| Bundle | MU of peanut butter | MU of tuna | Marginal Rate of Substitution |
| A | 0.25 | 2.41 | |
| B | 0.31 | 1.50 | |
| C | 0.42 | 0.84 | |
| D | 0.66 | 0.33 |
Answer
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