Solved

Taylor's Marginal Utility from Watching Movies and from Eating Out

Question 74

Multiple Choice

Taylor's marginal utility from watching movies and from eating out (in utils) is shown below. Taylor spends exactly $100 every month on these two forms of entertainment, and the price of each movie is $10 and the price of each dinner is $20.  Movies  Per Month  Marginal Utility  Per Movie  Dinners Out  Per Month  Marginal Utility  Per Dinner 160115025021403203120454100\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Movies } \\\text { Per Month }\end{array} & \begin{array} { c } \text { Marginal Utility } \\\text { Per Movie }\end{array} & \begin{array} { c } \text { Dinners Out } \\\text { Per Month }\end{array} & \begin{array} { c } \text { Marginal Utility } \\\text { Per Dinner }\end{array} \\\hline 1 & 60 & 1 & 150 \\\hline 2 & 50 & 2 & 140 \\\hline 3 & 20 & 3 & 120 \\\hline 4 & 5 & 4 & 100 \\\hline\end{array} Taylor's optimal combination of movies and eating out is:


A) 3 movies and 3 dinners.
B) 4 movies and 3 dinners.
C) 3 movies and 4 dinners.
D) 2 movies and 4 dinners.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents