Homework help!!!

Question

dale likes to consume both sweatshirts and jackets. the price of a sweatshirt is $15, while the price of a jacket is $60. if dale 's marginal benefit of another sweatshirt is $60, what must be the marginal benefit of another jacket? Assume dale is optimizing by using the "equal bang for your buck" rule

Answer 1

The utility-maximizing rule states you consume until MB/$ of good A = MB/$ of good B.

Jacket Sweatshirt

MB/$60 60/$15 = 4

You want the MB/$60 = 4 for the jacket. The MB of another jacket is $240.