Question

Miriam consumes tacos and Coke. Suppose the price of a taco is ​$3.80​, the price of a Coke is ​$2.70​, and that Miriam is currently consuming tacos and Coke such that her marginal utility of tacos is 87 and her marginal utility of Coke is 45. Is Miriam behaving​ optimally? If​ not, then what should she​ do?

Answer 1

Miriam should consume more tacos and less coke.

Explanation:

Miriam's marginal utility is not optimise, in order to do so, she needs to consume less coke and more tacos.

Remember that Marginal Utility refers to the satisfaction or benefit we extract from some product.