Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $4 and the price of D is $2, then

A) the marginal utility of D is twice that of C.
B) the marginal utility of D is the same as that of C.
C) the marginal utility of C is twice that of D.
D) the relationship between the marginal utility of C and D cannot be determined.

Marginal Utility

The increase in satisfaction or utility derived from the consumption of an additional unit of a good or service.

Utility-Maximizing

A theoretical concept in economics that individuals or firms seek to achieve the greatest satisfaction or profit from their actions, subject to their resources.

Price

The amount of money expected, required, or given in payment for something.