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. Unit of product(1)Marginal utility, A(2)Marginal utility, B(3)Marginal utility, CFirst183912Second163610Third14339Fourth12308Fifth10277Sixth8245Seventh6213 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?

In microeconomics, the function of U {"utility"} is described as a crucial term or concept in which…

Answered: Unit of product (1) Marginal utility,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.

Unit of product	(1) Marginal utility, A	(2) Marginal utility, B	(3) Marginal utility, C
First	18	39	12
Second	16	36	10
Third	14	33	9
Fourth	12	30	8
Fifth	10	27	7
Sixth	8	24	5
Seventh	6	21	3

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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