John is maximizing utility when consuming two goods: French fries and hot dogs. If the marginal utility from the last box of fries John consumed is 60 and the marginal utility of the last hot dog John consumed is 120 and hot dogs cost $1.00 apiece, a box of fries must cost $0.50.
Answer the following statement true (T) or false (F)
True
Since John is maximizing utilities, the ratio of the marginal utilities to each price must be equal. To find the price of a box of fries, solve 120/$1 = 60/X for X.
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