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Microeconomics

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Moderate

Marginal Utility of Socks

MICRO-NLEYZG

Thick wool socks can be very handy during the winter months, especially in blizzard conditions. Assume that there is Christmas-time, and there is a blizzard outside. You currently have $10$ pairs of socks (no socks have been eaten by the dryer), and your utility from a complete pair of socks is $1$. You do not gain utility from sock puppets, so a single, unpaired sock gives you a utility of $0$. What is your marginal utility if your mom gives you one left sock as a Christmas present (and this is the only present you receive)? What is your marginal utility if your dad gives you one right sock (and this is the only present you receive)? It should be also noted that thick wool socks are asymmetrical fit socks - left footed socks can only fit on your left foot, and right footed socks can only fit on your right foot.

A

Marginal utility of 1 left sock = 0, marginal utility of 1 right sock = 0

B

Marginal utility of 1 left sock = 1, marginal utility of 1 right sock = 0

C

Marginal utility of 1 left sock = 0, marginal utility of 1 right sock = 1

D

Marginal utility of 1 left sock = 1, marginal utility of 1 right sock = 1