Question

Sasha buys a warm soda and a slice of cold pizza. The marginal utility from a soda is 40, and the price of the soda is $1. The marginal utility from a slice of pizza is 80. Since Sasha always chooses the utility-maximizing choice, we know the price of a slice of pizza must be:

A) $0.50.

B) $1.

C) $20.

D) $2.

Answer 1

The answer I think is c because it’s most accurate to me