Angel's marginal utility for playing pool is 10 after playing 5 games.Angel's marginal utility for bowling is 6 after 3 games.If both pool and bowling cost $1 a game,to maximize his utility Angel should
A)bowl more and play pool less
B)just go home
C)bowl only
D)bowl less and play pool more

Question

Quizplus · Accepted Answer

To maximize his utility, Angel should allocate his budget in a way that the marginal utility per dollar spent is equal across all activities.

The marginal utility per dollar spent for playing pool is 10/1 = 10, while for bowling it is 6/1 = 6. Therefore, Angel should play more pool and fewer bowling games to balance the marginal utility per dollar between both activities. This means that choice D is the best option since it suggests playing more pool and fewer bowling games.

Angel's Marginal Utility for Playing Pool Is 10 After Playing