Luis has $ 8 to spend a week on pizzas and books. The price of the pizzas is $ 2 and the price of the books is $ 2 each. The following table presents Luis's total profit related to the pizzas and books he buys per week.

Calculate the following: a) Marginal utility and marginal utility per dollar when he buys 4 pizzas a week.

It is checked as follows:

The marginal utility is 6

The dollar marginal profit is 3

b) Marginal profit and marginal profit per dollar when he buys 3 books a week.

It is checked as follows:

The marginal utility is 14

The dollar marginal profit is 7

c) If Luis 4 pizzas and 3 books per week, does he maximize his total utility? If not, what should you do to maximize it?

Transcribed Image Text:

PIZZAS LIBROS Cantidad por Utilidad total Cantidad por semana Utilidad total semana 1 14 100 2 24 120 3 32 3 134 38 4 144 PIZZAS LIBROS Cantidad por Utilidad total Cantidad por semana Utilidad total semana 1 14 100 2 24 120 3 32 3 134 38 4 144

Answer rating: 100% (QA)

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