Explain which consumer is not maximizing his-her utility

Reference no: EM13232640

Jim and Matt allocate their consumption between two goods: hats and bats. The price of hats is $4 each and the price of bats is $8 each. For Jim, the marginal utility of the last hat consumed was 8 and the marginal utility of the last bat was 24. For Matt the marginal utility of the last hat was 6 and the marginal utility of the last bat was 12. Which consumer is not maximizing his/her utility? How can you tell? How should he/she change their allocation?

Reference no: EM13232640

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