Ken consumes two goods,Sprite and potato chips.Sprite costs $1 per can,and he consumes it to the point where the marginal utility he receives from his last Sprite is 3.Potato chips cost $2 per bag,and the relationship between the marginal utility he gets from eating a bag of potato chips and the number of bags he eats per month is as follows:

If Ken is maximizing his utility,how many bags of potato chips does he buy each month?

Question

Ken consumes two goods,Sprite and potato chips.Sprite costs $1 per can,and he consumes it to the point where the marginal utility he receives from his last Sprite is 3.Potato chips cost $2 per bag,and the relationship between the marginal utility he gets from eating a bag of potato chips and the number of bags he eats per month is as follows:

If Ken is maximizing his utility,how many bags of potato chips does he buy each month?

Quizplus · Accepted Answer

To maximize his utility, Ken should allocate his budget such that the marginal utilities per dollar spent on both goods are equal. 
MU/Price of Sprite = MU/Price of potato chips
3/1 = MU/2
Solving for MU, we get:
MU = 6
From the table, we can see that Ken reaches a MU of 6 after consuming 4 bags of potato chips. Therefore, he buys 4 bags of potato chips each month to maximize his utility.

Ken Consumes Two Goods,Sprite and Potato Chips