(Table: Marginal Utility Schedule for Joachim) Looking at the table, will Joachim be maximizing his utility if he has $71 to spend and buys a bundle of four movie tickets, three hamburgers, two pairs of socks, and one box of tissues?
$\begin{array}{|l|c|c|c|c|}
\hline & \begin{array}{c}
M U \text { movie ticket } \
P=\$ 10
\end{array} & \begin{array}{c}
M U \text { hamburger } P= \
\$ 5
\end{array} & \begin{array}{c}
M U \text { pair of socks } \
P=\$ 4
\end{array} & \begin{array}{c}
M U \text { box of tissues } \
P=\$ 3
\end{array} \
\hline \text { 1st } & 30 & 17 & 6 & 3 \
\hline \text { 2nd } & 25 & 12.5 & 3 & 2 \
\hline \text { 3rd } & 18 & 10 & 1 & 1 \
\hline \text { 4th } & 8 & 4 & 0 & 0 \
\hline 5 \text { th } & 0 & 0 & & \
\hline
\end{array}$
A) Yes, because MU/P is equal across all the goods.
B) Yes, because MU is at its maximum for the last unit bought of each good.
C) No, because he did not buy the units with the highest MU.
D) No, because MU/P is not equal across all the goods.

Question

Quizplus · Accepted Answer

To maximize utility, the consumer should allocate their budget in a way that the marginal utility per dollar (MU/P) is equal across all goods. In this case, the MU/P for each good at the quantities bought are not equal, indicating that Joachim is not maximizing his utility.

(Table: Marginal Utility Schedule for Joachim) Looking at the Table