Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point?

A) 2 movies, 2 video game rentals
B) 0 movies, 6 video game rentals
C) 5 movies, 7 video game rentals
D) 1 movie, 4 video game rentals

Question

Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point?

A) 2 movies, 2 video game rentals 
B) 0 movies, 6 video game rentals 
C) 5 movies, 7 video game rentals 
D) 1 movie, 4 video game rentals

Quizplus · Accepted Answer

The Answer of Alex has $18 per week in his entertainment budget. He splits his time between going to the movies and renting video games. Each movie costs $6 while each video game rental costs $3. The measured total utility of each of his activities is shown in the table below. What is Alex's utility maximizing point?

A) 2 movies, 2 video game rentals 
B) 0 movies, 6 video game rentals 
C) 5 movies, 7 video game rentals 
D) 1 movie, 4 video game rentals

Alex Has $18 Per Week in His Entertainment Budget