Bob budgets $12 a week for entertainment. He splits his time between going to the movies and going to the gym. Each movie costs $3 and each session at the gym also costs $3. The total utility from each of these activities is shown in the table below. Bob's utility maximizing point is:

A) 3 movies; 3 gym workout sessions
B) 4 movies; 0 gym workout sessions
C) 4 movies; 2 gym workout sessions
D) 1 movie; 5 gym workout sessions

Question

Bob budgets $12 a week for entertainment. He splits his time between going to the movies and going to the gym. Each movie costs $3 and each session at the gym also costs $3. The total utility from each of these activities is shown in the table below. Bob's utility maximizing point is:

A) 3 movies; 3 gym workout sessions 
B) 4 movies; 0 gym workout sessions 
C) 4 movies; 2 gym workout sessions 
D) 1 movie; 5 gym workout sessions

Quizplus · Accepted Answer

The Answer of Bob budgets $12 a week for entertainment. He splits his time between going to the movies and going to the gym. Each movie costs $3 and each session at the gym also costs $3. The total utility from each of these activities is shown in the table below. Bob's utility maximizing point is:

A) 3 movies; 3 gym workout sessions 
B) 4 movies; 0 gym workout sessions 
C) 4 movies; 2 gym workout sessions 
D) 1 movie; 5 gym workout sessions

Bob Budgets $12 a Week for Entertainment