Rick eats only french fries and burgers at his office cafeteria. His weekly lunch budget is $48. Each burger costs $6 and each order of fries costs $3. When deciding how much of each good to buy, Rick knows that 2 burgers and 4 orders of french fries will give him a utility of 8. At his utility-maximizing point, Rick's utility is:

Question

Quizplus · Accepted Answer

Rick's utility-maximizing point is when he spends his entire budget of $48. If 2 burgers and 4 fries give him a utility of 8, then 4 times that combination (8 burgers and 16 fries) will use his entire budget and give him a utility of 32.

Rick Eats Only French Fries and Burgers at His Office