Answer:
D. Price information is also needed to determine what should be purchased next
Explanation:
Utility refers to the amount of satisfaction derived upon consumption of unit of a product.
Marginal utility refers to the addition to total utility when an additional unit of a product is consumed.
The decision concerning a choice between two products, would be taken with respect to their respective utilities derived per unit of a common unit i.e price, expressed in dollars.
The product which provides a higher marginal utility per unit of dollar would be preferred for purchase.
In the given case, the marginal utility of a cup of coffee is greater than the marginal utility of a donut. While deciding which unit of the two should be purchased, the price of both is required to arrive at a decision.
So, marginal utility per unit of dollar spent is required to be computed in the given case.
