Bob's Marginal Utility for consuming beer and pizza with $8.00 in income

-According to the above table, how much total utility does Bob get from 3 pieces of pizza?
A) 30 utils
B) 85 utils
C) 115 utils
D) 130 utils

Question

Bob's Marginal Utility for consuming beer and pizza with $8.00 in income
 
-According to the above table, how much total utility does Bob get from 3 pieces of pizza?
A) 30 utils 
B) 85 utils 
C) 115 utils 
D) 130 utils

Quizplus · Accepted Answer

Based on the table, Bob's marginal utility for the third piece of pizza is 30 utils. Therefore, he will have a total utility of (85 + 30) 115 utils from consuming 3 pieces of pizza.

As for the best choice, it depends on what Bob values more - beer or pizza. If he values beer more, he should consume 2 pieces of pizza and 2 beers, which would give him a total utility of 120 utils (60 utils from each beer and 30 utils from each of the 2 pieces of pizza). However, if he values pizza more, he should consume 3 pieces of pizza, which would give him a total utility of 115 utils.

Bob's Marginal Utility for Consuming Beer and Pizza with $8