Gonzo consumes only two things--coke and hot dogs. We can define the addition to "happiness" of consuming an additional coke as the marginal utility of coke and that for hot dogs as the marginal utility of hot dogs. The prices of coke and hot dogs are fixed and Gonzo has a limited budget. In order to maximize "happiness" subject to his limited budget, Gonzo should purchase coke and hot dogs so thata. the marginal utility of coke is the same as the marginal utility of hot dogs. b. he spends the same amount on coke as on hot dogs. c. the addition to happiness of the last coke is the same as the addition to happiness of the last hot dog. d . the addition to happiness per dollar spent on coke is the same as the additionto happiness per dollar spent on hot dogs.
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Gonzo consumes only two things--coke and hot dogs. We can define the addition to "happiness" of cons...
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