If the price of an apple is \( \$ 0.50 \), the marginal utility per dollar spent on the fifth apple is:
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Mind Expander
To find the marginal utility per dollar spent on the fifth apple, you first need the marginal utility (MU) of that fifth apple. The marginal utility is the additional satisfaction gained from consuming one more unit. If the marginal utility of the fifth apple is, say, \( MU = 2 \), you would calculate the marginal utility per dollar spent as follows: \[ \text{Marginal Utility per Dollar} = \frac{\text{MU}}{\text{Price}} = \frac{2}{0.50} = 4. \] So, if the marginal utility of the fifth apple is indeed 2, then the marginal utility per dollar would be 4. Now, if you don’t have the marginal utility figure, it’s like trying to solve a puzzle without all the pieces! To determine this, ensure you’re measuring the satisfaction (utility) of each apple as you consume more, which will help you find the right MU for accurate calculations.
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