Ken consumes two goods,beer and pretzels.A beer costs $1 per bottle and he consumes it to the point where the marginal utility he receives from his last beer is 3.Pretzels cost $2 per bag,and the relationship between the marginal utility he gets from eating a bag of pretzels and the number of bags he eats per month is as follows:
If Ken is maximizing his utility,how much does he spend on pretzels each month?

Question

Ken consumes two goods,beer and pretzels.A beer costs $1 per bottle and he consumes it to the point where the marginal utility he receives from his last beer is 3.Pretzels cost $2 per bag,and the relationship between the marginal utility he gets from eating a bag of pretzels and the number of bags he eats per month is as follows: 
If Ken is maximizing his utility,how much does he spend on pretzels each month?

Quizplus · Accepted Answer

The Answer of Ken consumes two goods,beer and pretzels.A beer costs $1 per bottle and he consumes it to the point where the marginal utility he receives from his last beer is 3.Pretzels cost $2 per bag,and the relationship between the marginal utility he gets from eating a bag of pretzels and the number of bags he eats per month is as follows: 
If Ken is maximizing his utility,how much does he spend on pretzels each month?

Ken Consumes Two Goods,beer and Pretzels