Mark’s marginal utility of a third waffle is 10 units and marginal utility of a second slice of ham is 30 units. If Mark eats the third waffle, which of the following statements is true?

a. The price of a waffle is five times more than the price of a slice of ham.
b. The price of a waffle is three times more than the price of a slice of ham.
c. The price of a waffle is less than one-third the price of a slice of ham.
d. The price of a waffle is four times more than the price of a slice of ham.
e. The price of a waffle is less than one-fourth the price of a slice of ham.

ANSWER:

c. The price of a waffle is less than one-third the price of a slice of ham.