If it costs $6.00 to go to the movies and $25.00 to go to a hockey game, Tom is maximizing his utility between movies and hockey if his marginal utility of movies is 12 units and his marginal utility from hockey is 25.

Question

Quizplus · Accepted Answer

The question does not provide enough information to determine if Tom is maximizing his utility between movies and hockey. We would need to know the total amount of money Tom has to spend on entertainment, as well as the marginal utility per dollar spent on each activity. Without this information, we cannot determine if Tom is maximizing his overall utility.

If It Costs $6