Georgia has a MU/P of 10 for tennis lessons, a MU/P of 6 for sewing lessons, and a U/P of 2 for cooking lessons. In order to maximize utility, she should:
A) take more cooking lessons.
B) take more sewing lessons.
C) take more tennis lessons.
D) stay with her current choices.
E) take fewer lessons of each choice.

Question

Quizplus · Accepted Answer

Georgia should take more tennis lessons because it has the highest MU/P ratio of 10 compared to sewing (MU/P ratio of 6) and cooking (U/P ratio of 2). This means that for each dollar spent on tennis lessons, she is getting more utility (10 units) compared to sewing (6 units) or cooking (2 units). Therefore, taking more tennis lessons would allow her to maximize her overall utility.

Georgia Has a MU/P of 10 for Tennis Lessons, a MU/P