The price of a hotdog is $1, the price of a movie ticket is $5, and the consumer has $13. A consumer has purchased 3 hotdogs and two movie tickets, receiving 10 units of utility for the last hotdog and 10 units of utility for the last movie. The set of goods
A. is an optimum because the consumer has maximized her utility given the limited income she had.
B. is not an optimum because the marginal utility for the second hotdog was less than the marginal utility for the first hotdog.
C. is not an optimum because the marginal utility per dollar spent is greater for the hotdog than for the movie.
D. is an optimum since the entire income is spent and the marginal utility is the same for the last unit of each good.
Answer: C
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