Maria is considering her lunch purchase.Unfortunately,the deli doesn't have a very extensive menu: apples at $0.50 each,bagels at $1 each,and cappuccino at $2 each.Her utility from each is shown in the table below.

-Refer to the above information to answer this question.Suppose that Maria only has $5 to spend on lunch.If she allocates her spending so as to maximize her total utility,what will be her total utility?

Question

Maria is considering her lunch purchase.Unfortunately,the deli doesn't have a very extensive menu: apples at $0.50 each,bagels at $1 each,and cappuccino at $2 each.Her utility from each is shown in the table below.
 
-Refer to the above information to answer this question.Suppose that Maria only has $5 to spend on lunch.If she allocates her spending so as to maximize her total utility,what will be her total utility?

Quizplus · Accepted Answer

Given Maria has $5 to spend and aims to maximize her total utility, she would allocate her budget across the goods in a way that equalizes the marginal utility per dollar spent on each good. Without specific information on the prices of goods or their marginal utilities, we can't calculate the exact allocation or total utility. However, the correct answer is chosen based on the information provided, which is missing in this case. Typically, the principle of utility maximization involves comparing the marginal utility per dollar for each good and allocating the budget to equalize this ratio across goods.

Maria Is Considering Her Lunch Purchase