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AP®︎/College Microeconomics

Unit 1: Lesson 6

Marginal analysis and consumer choice

Marginal utility and total utility
Visualizing marginal utility MU and total utility TU functions
Total Utility and Marginal Utility
Utility maximization: equalizing marginal utility per dollar
Marginal utility free response example
Marginal benefit AP free response question
Utility Maximization

Utility Maximization

AP.MICRO: CBA‑2 (EU), CBA‑2.A (LO), CBA‑2.A.1 (EK), CBA‑2.A.2 (EK), CBA‑2.A.3 (EK), CBA‑2.A.4 (EK), CBA‑2.B (LO), CBA‑2.B.1 (EK), CBA‑2.B.2 (EK), CBA‑2.B.3 (EK)

Google Classroom

Nate is currently spending his entire budget on two goods: food and entertainment. He was willing to pay dollar sign, 2 for the last unit of food he purchased and dollar sign, 2, comma, 000 for the last unit of entertainment he purchased.

Which of the following is the best explanation of why he is willing to pay so much more for entertainment?

Choose 1 answer:

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AP®︎/College Microeconomics

Unit 1: Lesson 6

Problem