Pizza CDs

-Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in the table above. The price of a pizza is $10 and the price of a CD is $20. If Bobby maximizes utility from these goods, his total utility is ________ units.
A) 705
B) 750
C) 770
D) 880

Question

Pizza CDs
 
-Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in the table above. The price of a pizza is $10 and the price of a CD is $20. If Bobby maximizes utility from these goods, his total utility is ________ units.
A) 705 
B) 750 
C) 770 
D) 880

Quizplus · Accepted Answer

Bobby maximizes utility by allocating his budget such that the marginal utility per dollar spent on each good is equal. By examining the table and calculating the marginal utility per dollar for each combination, Bobby will spend $60 on 6 pizzas and $40 on 2 CDs, resulting in a total utility of 770 units.

Pizza CDs -Bobby Spends $100 Per Month on Pizza and CDs. His