Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point? Movies Total Utility Video Game Rentals Total Utility 0 0 0 0 1 40 1 30 2 75 2 55 3 105 3 76 4 130 4 92 5 160 5 106 6 114 7 116 Question 1 options: 2 movies, 2 video game rentals 0 movies, 6 video game rentals 5 movies, 7 video game rentals 1 movie, 4 video game rentals
Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point? Movies Total Utility Video Game Rentals Total Utility 0 0 0 0 1 40 1 30 2 75 2 55 3 105 3 76 4 130 4 92 5 160 5 106 6 114 7 116 Question 1 options: 2 movies, 2 video game rentals 0 movies, 6 video game rentals 5 movies, 7 video game rentals 1 movie, 4 video game rentals
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
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Question
Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point?
Movies |
Total Utility |
Video Game Rentals |
Total Utility |
0 |
0 |
0 |
0 |
1 |
40 |
1 |
30 |
2 |
75 |
2 |
55 |
3 |
105 |
3 |
76 |
4 |
130 |
4 |
92 |
5 |
160 |
5 |
106 |
|
|
6 |
114 |
|
|
7 |
116 |
Question 1 options:
2 movies, 2 video game rentals |
|
0 movies, 6 video game rentals |
|
5 movies, 7 video game rentals |
|
1 movie, 4 video game rentals |
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