Question: Luc allocates his total monthly household expenditures between only two goods, restaurant meals and all other goods. Suppose the price of each restaurant meal is

Luc allocates his total monthly household expenditures between only two goods, restaurant meals and “all other goods.” Suppose the price of each restaurant meal is $20 and the price of each unit of “all other goods” is $10. In each case below, assuming that Luc is maximizing his utility, determine the marginal utility (MU received from the good that is not mentioned.

a. The MU he is currently receiving from his consumption of restaurant meals is 100.

b. The MU he is currently receiving from his consumption of “all other goods” is 40.

c. The MU he is currently receiving from his consumption of restaurant meals is 56.

d. The MU he is currently receiving from his consumption of “all other goods” is 122.

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