George consumes two goods, milk, and cookies. He has maximized his utility given his income, Milk costs $2 per gallon and he consumes it to the point where the marginal utility he receives from drinking a gallon of milk is 6. Cookies cost $3 per bag and the relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of cookies Marginal Utility 21 How many bags of cookies does George buy each month? 1 2 18 15 12

George consumes two goods, milk, and cookies. He has maximized his utility given his income, Milk costs $2 per gallon and he consumes it to the point where the marginal utility he receives from drinking a gallon of milk is 6. Cookies cost $3 per bag and the relationship between the marginal utility that George gets from eating a bag of cookies and the number of bags he eats per month is as follows: Bags of cookies Marginal Utility 21 How many bags of cookies does George buy each month? 1 2 18 15 12

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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