The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Number Number Marginal Utility Marginal Utility of of Pizzas Sodas 1 10 1 2 9 3 4 1 4 2 4 1 1. Calculate the marginal utility per dollar for sodas. Show your work. 2. List each sequential decision made to maximize utility. 3. How many pizzas and sodas maximize utility?
The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Number Number Marginal Utility Marginal Utility of of Pizzas Sodas 1 10 1 2 9 3 4 1 4 2 4 1 1. Calculate the marginal utility per dollar for sodas. Show your work. 2. List each sequential decision made to maximize utility. 3. How many pizzas and sodas maximize utility?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:The table below shows the marginal utility from
consuming mini pizzas and sodas. If pizzas and soda
are the only goods and the price of a mini pizza is $1
and the price of a soda is $.50, how many of each will
maximize utility if you have $4 for lunch?
Number
Number
Marginal
Utility
Marginal
of
of
Utility
Pizzas
Sodas
1
10
1
6.
2
9
2
3
4
3
1
4
2
4
1
5
1. Calculate the marginal utility per dollar for
sodas. Show your work.
2. List each sequential decision made to maximize
utility.
3. How many pizzas and sodas maximize utility?
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