Colin spends his income of $100 per week on two goods: pizzas (which cost $8 each) and milk (which costs $1 per gallon). At his current level of consumption, the marginal utility from the last pizza consumed is 32 and the marginal utility from the last gallon of milk is 4. Is Colin maximizing his utility? Why or why not? If not, what should Colin do to achieve a higher level of utility?

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The Answer of Colin spends his income of $100 per week on two goods: pizzas (which cost $8 each) and milk (which costs $1 per gallon). At his current level of consumption, the marginal utility from the last pizza consumed is 32 and the marginal utility from the last gallon of milk is 4. Is Colin maximizing his utility? Why or why not? If not, what should Colin do to achieve a higher level of utility?

Colin Spends His Income of $100 Per Week on Two