Nick enjoys consuming both soda and coffee. Each can of soda costs PS=$1PS=$1, and each cup of coffee costs PC=$2PC=$2.
Posted: Mon Mar 21, 2022 4:28 pm
Nick enjoys consuming both soda and coffee. Each can of soda costs PS=$1PS=$1, and each cup of coffee costs PC=$2PC=$2. Suppose that Nick buys 30 cans of soda and 20 cups of coffee per week. The following graphs show his marginal utility curves for soda and coffee. At his current consumption level, Nick's marginal utility from consuming the last can of soda he bought is MUS=12MUS=12 utils per can, and his marginal utility from consuming the last cup of coffee he bought is MUC=12MUC=12 utils per cup.