Increase Your Utility with Raúl's Choices!

Can Raúl increase his utility by consuming more chicken and less beef?

A. Yes

B. No

C. Uncertain

Answer:

The given statement is false. Raúl could increase his utility by consuming more beef and less chicken.

Raúl's marginal utility of chicken is 10, while his marginal utility of beef is 15. To determine if he can increase his utility, we need to compare the marginal utilities per dollar spent on chicken and beef.

If we assume Raúl spends one dollar on each pound of chicken and beef, the marginal utility per dollar spent on chicken is 10 MU/dollar, and for beef, it is 15 MU/dollar.

Since the marginal utility per dollar spent on beef is higher than chicken, Raúl would increase his utility by consuming more beef and less chicken. This choice leads to a higher increase in utility per dollar spent compared to consuming more chicken.

Therefore, based on the information provided, Raúl could increase his utility by consuming more beef and less chicken, not the other way around. Make smart choices like Raúl to enhance your utility!