5. Bob budgets $24 a week for entertainment. He splits his time between going to the movies and going to the gym. Based upon the information contained below, find Bob's utility maximizing point. First: Complete the budget constraint. (Determine what combinations are possible.) Income: $24 Movie Price: $6 Gym Session Price: $3 Movies Gym Sessions Second: Complete this chart and use it to determine the utility maximizing point. Total MU MU Utility Gym Total MU MU per $ Movies per $ Visits Utility 0. 0. 30 50 55 85 3. 76 3 115 4 92 4. 107 103 5. 111 6. 114 7 115

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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5.
7.
5. Bob budgets $24 a week for entertainment. He splits his time between going to the movies and going to the gym.
Based upon the information contained below, find Bob's utility maximizing point.
First: Complete the budget constraint. (Determine what combinations are possible.)
Income: $24
Movie Price: $6 Gym Session Price: $3
Movies
Gym Sessions
Second: Complete this chart and use it to determine the utility maximizing point.
Total
MU
MU
per $
Gym Total
MU
Visits Utility
Movies
MU
Utility
per $
0.
30
1
2,
50
5
85
76
115
4
92
4
107
111
114
5.
103
91
115
6.
Thinking laterally: Forlunch. Maria eats onlv salads or vegetarian burgers, Her weekly fond bud
sh (United States)
234 5
Transcribed Image Text:5. 7. 5. Bob budgets $24 a week for entertainment. He splits his time between going to the movies and going to the gym. Based upon the information contained below, find Bob's utility maximizing point. First: Complete the budget constraint. (Determine what combinations are possible.) Income: $24 Movie Price: $6 Gym Session Price: $3 Movies Gym Sessions Second: Complete this chart and use it to determine the utility maximizing point. Total MU MU per $ Gym Total MU Visits Utility Movies MU Utility per $ 0. 30 1 2, 50 5 85 76 115 4 92 4 107 111 114 5. 103 91 115 6. Thinking laterally: Forlunch. Maria eats onlv salads or vegetarian burgers, Her weekly fond bud sh (United States) 234 5
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