Javier enjoys eating cookies and drinking milk,but he experiences diminishing marginal utility when consuming both of them.The following table represents the marginal utility he gets from the first 5 units of each item.Cookies cost 50 cents each,whereas glasses of milk cost $1 each.

a.If Javier has only $2.00,which combination of milk and cookies maximizes his utility?
b.If Javier's spending ability increases to $3.50,what combination of milk and cookies maximizes his utility?
c.If Javier does not have a budget constraint,what combination of milk and cookies maximizes his utility?

Question

Javier enjoys eating cookies and drinking milk,but he experiences diminishing marginal utility when consuming both of them.The following table represents the marginal utility he gets from the first 5 units of each item.Cookies cost 50 cents each,whereas glasses of milk cost $1 each.
  
a.If Javier has only $2.00,which combination of milk and cookies maximizes his utility?
b.If Javier's spending ability increases to $3.50,what combination of milk and cookies maximizes his utility?
c.If Javier does not have a budget constraint,what combination of milk and cookies maximizes his utility?

Quizplus · Accepted Answer

The Answer of Javier enjoys eating cookies and drinking milk,but he experiences diminishing marginal utility when consuming both of them.The following table represents the marginal utility he gets from the first 5 units of each item.Cookies cost 50 cents each,whereas glasses of milk cost $1 each.
  
a.If Javier has only $2.00,which combination of milk and cookies maximizes his utility?
b.If Javier's spending ability increases to $3.50,what combination of milk and cookies maximizes his utility?
c.If Javier does not have a budget constraint,what combination of milk and cookies maximizes his utility?

Javier Enjoys Eating Cookies and Drinking Milk,but He Experiences Diminishing