Columns 1 through 3 in the table below show the marginal utility which a particular consumer would get by purchasing various quantities of products A, B, and C. (1) Unit 1 2 696 AWN 3 4 5 7 (2) Marginal utility, A 18 16 14 12 10 8 6 (3) Marginal utility, B 39 36 33 30 27 24 21 (4) Marginal utility, C 12 10 053 If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, what combination of the three products should be purchased in order to maximize utility?

Columns 1 through 3 in the table below show the marginal utility which a particular consumer would get by purchasing various quantities of products A, B, and C. (1) Unit 1 2 696 AWN 3 4 5 7 (2) Marginal utility, A 18 16 14 12 10 8 6 (3) Marginal utility, B 39 36 33 30 27 24 21 (4) Marginal utility, C 12 10 053 If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, what combination of the three products should be purchased in order to maximize utility?

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 12PA

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Question

Columns 1 through 3 in the table below show the marginal utility which a particular consumer would get by
purchasing various quantities of products A, B, and C.
(1)
Unit
1
2
696 AWN
3
4
5
7
(2)
Marginal utility, A
18
16
14
12
10
8
6
(3)
Marginal utility, B
39
36
33
30
27
24
21
(4)
Marginal utility, C
12
10
053
If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three
products, what combination of the three products should be purchased in order to maximize utility?

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Step 1: Define marginal utility

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